SEBI's new settlement regulations come into force with online filing, fast-track mechanism
New Delhi, Nov 7
The Securities and Exchange Board of India said its Settlement of Administrative and Civil Proceedings) Regulations, 2026 has come into force, as a framework for settling specified proceedings under securities laws.
The regulator also introduced online application facilities, settlement amount calculators, and a dedicated help desk to facilitate settlement applications along with a set of Frequently Asked Questions (FAQs).
The statement from SEBI said the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, notified on October 8, 2026, became effective from November 7, 2026, replacing the SEBI (Settlement Proceedings) Regulations, 2018.
Under the new framework, eligible entities can apply to settle specified proceedings at any stage, subject to compliance with prescribed requirements. SEBI has also provided an explainer video demonstrating how applicants can use the settlement amount calculation facility.
"Eligible persons may apply for settlement in accordance with Settlement Regulations, 2026," the statement said.
The regulations prescribe a non-refundable application fee of Rs 25,000 for natural persons and Rs 35,000 for other applicants. Settlement amounts will be determined through a formula that considers the base amount, stage of proceedings, regulatory action, gravity of the alleged violation, aggravating factors and mitigating factors.
The minimum settlement amount has been fixed at Rs 3 lakh for first-time applicants and Rs 7 lakh for other applicants.
The regulations introduce fast-track settlement mechanisms, including violation-based and monetary threshold-based mechanisms.
Under the monetary threshold-based fast-track settlement mechanism, applications involving settlement amounts of up to Rs 10 lakh, where no disgorgement or remedial and regulatory terms are involved, may be processed through the prescribed procedure.
The framework also provides for the constitution of an Internal Committee and a High-Powered Advisory Committee to examine settlement applications and recommend settlement terms.
— IANS
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