{
  "id": 883707,
  "title": "SEBI overhaul aims to cut settlement costs by 50%",
  "url": "https://urgent.news/2026/08/14/sebi-overhaul-aims-to-cut-settlement-costs-by-50",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-14T15:32:40.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/sebi-overhaul-aims-to-cut-settlement-costs-by-50/article71346563.ece"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Board of India (SEBI) is rolling out a major overhaul of its settlement framework, with the goal of slashing costs by 50% and making the process less litigious and more efficient. Key changes include a simplified formula for calculating settlement amounts, a fast-track mechanism for cases involving penalties up to ₹10 lakh, and a settlement notice issued before a show-cause notice (SCN). SEBI is also giving entities an extended 90-day window to apply for settlement, and allowing a second chance to apply if an initial request is rejected, provided circumstances have changed. The proposed method for calculating settlement amounts takes into account the stage of proceedings, the nature of the violation, and various aggravating and mitigating factors. SEBI expects the gap between proposed settlement amounts and actual penalties to shrink from eight times to about four times under the new framework. A fast-track settlement route is also being introduced for cases involving smaller penalties, bypassing the usual review committee. These changes are based on SEBI's findings that the current system leads to excessively large settlement amounts that are rarely enforced, and that a simpler, more transparent process could produce better outcomes. The regulator is now seeking public feedback on the proposals, which must be submitted in English by September 4.",
  "summary": "Fast-track route proposed for cases up to ₹10 lakh; settlement window extended to 60 days pre-SCN and 90 days post-SCN",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}