SEBI's New Settlement Regulations 2026 Take Effect From Today; Check Eligibility, Application Rules

The Securities and Exchange Board of India (SEBI) has announced that its Settlement of Administrative and Civil Proceedings Regulations, 2026, will come into effect on Nov 7, replacing the existing settlement framework.

The regulations, notified on Oct 8, 2026, establish procedures for settling specified proceedings under securities laws.

To simplify applications, SEBI has introduced an online filing facility, settlement amount calculator, frequently asked questions (FAQs), an explainer video and a dedicated help desk on its official website.

Eligible applicants may seek settlement at different stages of proceedings, subject to prescribed conditions.

The framework prescribes a non-refundable application fee of Rs25,000 for individuals and Rs35,000 for other applicants.

The minimum settlement amount is Rs3 lakh for first-time applicants and Rs7 lakh for others.

Settlement calculations will consider the base amount, stage of proceedings, regulatory action, seriousness of the alleged violation and relevant aggravating or mitigating factors.

Applications involving proceedings pending before SEBI must generally be submitted within 90 days of receiving a show-cause notice or supplementary notice, whichever is later.

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

Certain matters involving wilful defaulters, fraudulent borrowers and fugitive economic offenders may be ineligible.

Cases involving widespread market impact, substantial investor losses or threats to market integrity may also be excluded.

The regulations provide fast-track settlement mechanisms based on violation categories and monetary thresholds.

Applications involving settlement amounts up to Rs10 lakh may qualify for monetary threshold-based fast-track processing where no disgorgement, remedial or regulatory conditions are involved.

The framework also allows confidentiality benefits for applicants providing substantial assistance during regulatory examinations, investigations, inspections or audits, subject to specified requirements.

An Internal Committee and a High Powered Advisory Committee will examine applications and recommend settlement terms.

A Panel of Whole Time Members will decide whether to accept or reject applications.

The new regulations repeal the SEBI (Settlement Proceedings) Regulations, 2018, subject to transitional and saving provisions.

SEBI has made the regulations and supporting application facilities available on its website.