The Securities and Exchange Board of India (SEBI) has rolled out a new settlement framework, the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, which became effective on November 7, 2026. These updated regulations aim to streamline how eligible individuals and entities resolve specified regulatory actions, replacing the previous 2018 framework.
Key Features of the New Settlement Framework
A significant enhancement is the introduction of an online settlement application facility. To support this, SEBI has also launched a dedicated settlement amount calculator, a comprehensive FAQ section, and a help desk. An explanatory video is also available to guide applicants through the process of calculating settlement amounts.
Application Fees and Minimum Settlement Amounts
- Application Fee: A non-refundable fee of ₹25,000 is required for individuals, while other applicants must pay ₹35,000.
- Minimum Settlement: First-time applicants face a minimum settlement amount of ₹3 lakh, which increases to ₹7 lakh for repeat applicants.
The final settlement figure will be determined by various factors, including the base amount, the stage of the proceedings, the nature and severity of the alleged violation, any prior regulatory actions, and relevant aggravating or mitigating circumstances.
Deadlines and Fast-Track Options
Applicants typically have 120 days from the receipt of a show-cause notice (or supplementary notice) to file for settlement. However, this deadline does not apply to proceedings already pending before the Securities Appellate Tribunal (SAT) or the Supreme Court.
The new regulations also introduce a fast-track settlement mechanism. This includes both violation-based and monetary threshold-based procedures. Cases involving settlement amounts of up to ₹10 lakh may qualify for expedited processing, provided they do not involve disgorgement, remedial measures, or additional regulatory conditions.
Exclusions from Settlement
It is important to note that certain serious violations remain outside the scope of this settlement framework. These include cases involving wilful defaulters, fraudulent borrowers, and fugitive economic offenders. Additionally, proceedings with market-wide consequences, substantial investor losses, or those threatening market integrity may also be excluded based on regulatory provisions.
Confidentiality and Approval Process
The framework allows for confidentiality benefits for applicants who provide substantial assistance during examinations, investigations, inspections, or audits, subject to specific conditions. All settlement applications undergo scrutiny by an Internal Committee and a High Powered Advisory Committee, which then recommend appropriate terms. The final decision to accept or reject applications rests with a panel of SEBI's Whole Time Members.