SEBI New Settlement Regulations Kick In: Online Filing and Calculators Now Live
SEBI introduces new settlement regulations for administrative and civil proceedings starting Nov 7, featuring an online application and calculator.
The Securities and Exchange Board of India (SEBI) has officially rolled out the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, which come into effect on November 7. This new framework is designed to streamline how specified proceedings under securities laws are settled, moving away from older protocols to a more modernized, transparent system.
Digital Push: Online Applications and Tools
To ensure that the transition is seamless and accessible, the market regulator has introduced a suite of digital tools on its official website. Applicants no longer have to navigate complex manual filings; instead, they can utilize a new online application facility.
To further assist users, SEBI has launched:
- A Settlement Amount Calculator: A tool to help applicants estimate the costs involved.
- Explainer Video: A visual guide demonstrating exactly how to use the calculation facility.
- Support Systems: A dedicated help desk and a comprehensive list of Frequently Asked Questions (FAQs) to clear doubts.
The Cost of Settlement: Fees and Formulas
Under the new guidelines, applying for a settlement requires a non-refundable fee. For natural persons, the fee is set at Rs 25,000, while all other applicants must pay Rs 35,000.
The actual settlement amount is not a flat fee but is determined by a specific formula. This formula takes into account several critical variables, including:
- The base amount and the current stage of the proceedings.
- The nature of the regulatory action and the gravity of the alleged violation.
- Both aggravating and mitigating factors surrounding the case.
In terms of minimums, first-time applicants will face a minimum settlement amount of Rs 3 lakh, while repeat or other applicants will have a minimum threshold of Rs 7 lakh.
Timelines and Eligibility
Timing is critical under the 2026 regulations. For proceedings currently pending before SEBI, applications must generally be submitted within 90 days from the date a show-cause notice (or a supplementary show-cause notice) was served.
Notably, this 90-day restriction does not apply to cases that are already pending before the Supreme Court or the Securities Appellate Tribunal.
Who Cannot Settle?
SEBI has made it clear that not every case is eligible for settlement. The framework explicitly excludes:
- Wilful defaulters, fraudulent borrowers, and fugitive economic offenders.
- Violations that have caused substantial losses to investors.
- Cases with a wide-reaching market impact or those that adversely affect market integrity.
Fast-Track and Confidentiality Options
The new regulations introduce "fast-track" mechanisms to speed up the process. One such route is the monetary threshold-based settlement, where applications involving amounts up to Rs 10 lakh—provided there is no requirement for disgorgement or specific remedial terms—can be processed quickly.
Additionally, SEBI has introduced a provision for settlement with confidentiality. This is reserved for applicants who provide substantial assistance during audits, inspections, investigations, or examinations, subject to specific conditions.
The Decision-Making Process
To maintain oversight, the framework establishes a structured review process. An Internal Committee and a High Powered Advisory Committee will first examine the applications and recommend settlement terms. The final decision to accept or reject these applications rests with the Panel of Whole Time Members.
With the commencement of this new framework, the previous SEBI (Settlement Proceedings) Regulations, 2018, stand repealed, marking a significant shift in the regulator's approach to civil and administrative enforcement.