SEBI Implements New Securities Law Settlement Regulations

The Securities and Exchange Board of India implemented the Settlement of Administrative and Civil Proceedings Regulations, 2026, effective November 7, 2026. This new framework replaces the 2018 settlement regulations and allows eligible entities to settle specified proceedings under securities laws.

To facilitate the transition, the regulator launched an online application facility, a settlement amount calculator, and a dedicated help desk on its official website. The rules establish a non-refundable application fee of Rs 25,000 for natural persons and Rs 35,000 for other applicants. Minimum settlement amounts are set at Rs 3 lakh for first-time applicants and Rs 7 lakh for others.

The framework introduces fast-track mechanisms for certain violations with monetary thresholds up to Rs 10 lakh, provided no disgorgement or remedial terms are required. Applications for pending proceedings must generally be filed within 90 days of a show-cause notice and are reviewed by an Internal Committee and a High-Powered Advisory Committee before final approval by SEBI's Whole Time Members.

Settlements remain prohibited for fugitive economic offenders, fraudulent borrowers, and wilful defaulters, as well as cases that cause substantial investor losses or compromise market integrity.