SEBI's new settlement rules effective November 7: Online applications, revised fees, fast-track process explained

The Securities and Exchange Board of India (SEBI) has introduced a new settlement framework effective November 7, 2026, allowing eligible individuals and entities to resolve specified regulatory proceedings through a structured mechanism. The revised regulations also introduce online applications, a settlement amount calculator and provisions for faster resolution of certain cases.

The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, notified on October 8, replace the 2018 settlement framework, subject to transitional and saving provisions.

Online settlement facility

To simplify the application process, SEBI has launched an online settlement application facility, a settlement amount calculator, frequently asked questions (FAQs) and a dedicated help desk.

The regulator has also released an explanatory video demonstrating how applicants can calculate settlement amounts.

"Eligible persons may apply for settlement in accordance with Settlement Regulations, 2026," SEBI stated.

Under the framework, eligible applicants can seek settlement of specified proceedings at different stages, provided they meet the prescribed conditions.

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Application fees and settlement amounts

The regulations prescribe a non-refundable application fee of ₹25,000 for individuals and ₹35,000 for other applicants.

The minimum settlement amount has been fixed at ₹3 lakh for first-time applicants and ₹7 lakh for other applicants.

However, the final amount will depend on several factors, including the base amount, stage of proceedings, nature and seriousness of the alleged violation, regulatory action and applicable aggravating or mitigating circumstances.

Deadlines for filing applications

Applications relating to proceedings pending before SEBI must generally be submitted within 120 days of receiving a show-cause notice or supplementary show-cause notice, whichever is later.

However, this deadline does not apply to specified proceedings pending before the Securities Appellate Tribunal or Supreme Court.

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Fast-track settlement mechanism

The new regulations introduce violation-based and monetary threshold-based fast-track settlement procedures.

Under the monetary threshold mechanism, applications involving settlement amounts of up to ₹10 lakh may qualify for expedited processing, provided no disgorgement, remedial measures or additional regulatory conditions are involved.

Which cases cannot be settled?

Certain serious violations remain outside the settlement framework.

These include cases involving wilful defaulters, fraudulent borrowers and fugitive economic offenders.

Proceedings involving market-wide consequences, substantial investor losses or threats to market integrity may also be excluded, depending on regulatory provisions.

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Confidentiality and approval process

The regulations additionally allow settlement with confidentiality benefits for applicants providing substantial assistance in examinations, investigations, inspections or audits, subject to specified conditions.

Settlement applications will be examined by an Internal Committee and a High Powered Advisory Committee, which will recommend appropriate terms.

A panel of SEBI's Whole Time Members will subsequently decide whether to accept or reject the applications.

The revised framework aims to streamline regulatory settlements while retaining safeguards against serious securities market violations.

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