SEBI's new settlement rules take effect, with online applications and a ₹25,000 fee

The Securities and Exchange Board of India’s new settlement regulations came into force on Saturday, November 7. The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026 were notified on October 8 and repeal the 2018 Settlement Proceedings Regulations, subject to transitional and saving provisions. SEBI set November 7, 2026, as the date they take effect.

The market regulator has also opened an online application facility on its website. It comes with a settlement amount calculator, an explainer video, FAQs and a dedicated help desk.

Fees and amounts

Applicants pay a non-refundable fee of ₹25,000 if they are individuals and ₹35,000 if they are other entities. The minimum settlement amount is ₹3 lakh for first-time applicants and ₹7 lakh for others. The final figure is worked out from a base amount, the stage of the proceedings, the regulatory action involved, the gravity of the violation and any aggravating or mitigating factors.

Who can apply and when

An entity may apply at any stage of the specified proceedings, subject to the prescribed requirements. For proceedings pending before SEBI, applications are generally due within 90 days of service of a show-cause notice or a supplementary notice, whichever is later. That limit does not apply to matters before the Securities Appellate Tribunal or the Supreme Court.

Wilful defaulters, fraudulent borrowers and fugitive economic offenders cannot settle. Violations with a market-wide impact, substantial investor losses or harm to market integrity can also be excluded.

Fast track and confidentiality

The rules include a fast-track route, by type of violation or by money threshold. The monetary route covers applications up to ₹10 lakh where no disgorgement or remedial and regulatory terms are involved. Applicants who give substantial help in examinations, investigations, inspections or audits may be considered for confidentiality benefits, subject to conditions.

An Internal Committee and a High Powered Advisory Committee examine each application and recommend terms. The Panel of Whole Time Members then decides whether to accept or reject it.