SEBI’s New Settlement Rules Take Effect: ₹3 Lakh Is Only the Floor, Not the Price
The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026 apply from 7 November, with new application fees, a fast-track route up to ₹10 lakh and clear exclusions.
A new framework for settling securities-law proceedings with the Securities and Exchange Board of India came into force on 7 November 2026.
The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026 were notified on 8 October and replace the 2018 regulations, subject to transitional provisions. They let eligible people and firms, including individuals, stockbrokers, investment advisers and listed companies, resolve certain administrative and civil proceedings by paying a settlement amount.
Fees and minimum amounts: Individuals must pay a non-refundable application fee of ₹25,000; companies, intermediaries and other applicants pay ₹35,000. The minimum settlement amount is ₹3 lakh for first-time applicants and ₹7 lakh for others. These are floors, not fixed prices. SEBI will set the actual sum based on a base amount, the nature of the alleged violation, the stage of the proceedings and any aggravating or mitigating factors, and paying the minimum does not guarantee that a case will be settled.
Time limit: For proceedings pending before SEBI, an application generally has to be filed within 120 days of the show-cause notice or any supplementary notice, whichever is later. This limit does not apply to specified proceedings pending before the Securities Appellate Tribunal or the Supreme Court.
Fast track: Cases where the settlement amount is up to ₹10 lakh can be processed faster, as long as they do not involve disgorgement, remedial directions or other additional conditions.
Who is excluded: Wilful defaulters, fraudulent borrowers and fugitive economic offenders cannot use the route. Matters involving large investor losses, market-wide effects or a threat to market integrity may also be kept out.
Applications are examined by an Internal Committee and a High Powered Advisory Committee, and a panel of SEBI’s Whole Time Members takes the final decision. SEBI has also launched online filing, a settlement-amount calculator, FAQs and a help desk.
— Legal Desk
Image: SEBI Bhavan.jpg by Jimmy vikas, CC BY-SA 3.0, via Wikimedia Commons
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