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

The Securities and Exchange Board of India (SEBI) has implemented new Settlement Regulations effective November 7, 2026, replacing the previous settlement framework. These regulations, notified on October 8, 2026, outline procedures for resolving specified legal proceedings under securities laws. SEBI has simplified the application process with an online filing system, a settlement amount calculator, FAQs, an explanatory video, and a dedicated helpdesk on their official website.

Eligible individuals can seek settlements at various stages of proceedings, provided they meet specific conditions. The framework mandates a non-refundable application fee of Rs25,000 for individuals and Rs35,000 for other candidates. The minimum settlement amount is Rs3 lakh for first-time applicants and Rs7 lakh for others. Calculations take into account factors such as the base amount, the stage of proceedings, regulatory actions, the severity of the alleged violation, and relevant aggravating or mitigating circumstances.

Applications tied to proceedings before SEBI must typically be submitted within 90 days of receiving a show-cause or supplementary notice, though this deadline does not apply to cases before the Securities Appellate Tribunal or the Supreme Court. Certain matters involving intentional rule-breakers, deceitful borrowers, and economic offenders operating from abroad may be ineligible. Additionally, cases with significant market-wide impact, substantial investor losses, or threats to market stability may be excluded.

The regulations include expedited settlement processes categorized by violation types and monetary limits. Those with settlements up to Rs10 lakh may qualify for fast-track processing based on monetary thresholds, provided no disgorgement, remedial conditions, or regulatory penalties are involved. Confidentiality benefits are also available for applicants offering substantial assistance during regulatory checks, investigations, inspections, or audits, subject to specific conditions.

An Internal Committee and a High-Powered Advisory Committee will review applications, recommending settlement terms. A panel of full-time SEBI members will then decide on acceptance or rejection of the applications. The new regulations supersede the SEBI (Settlement Proceedings) Regulations, 2018, with only transitional and saving provisions remaining. SEBI has made the regulations and associated application tools accessible on their website.