SEBI Settlement Rules 2026 Now in Force: Fees, Fast Track, 90-Day Limit

The Securities and Exchange Board of India’s Settlement of Administrative and Civil Proceedings Regulations, 2026 came into force on Saturday, 7 November. SEBI, which notified the rules on 8 October, said it has also launched an online application facility, a settlement amount calculator, FAQs and a help desk on its website. The rules let a person or company facing a securities-law proceeding offer to settle it by paying an amount worked out under a formula, instead of fighting it to the end.

Rs 25,000 Fee and a 90-Day Clock

According to the ANI report carried by the Tribune, the non-refundable application fee is Rs 25,000 for individuals and Rs 35,000 for other applicants. The minimum settlement amount is Rs 3 lakh for first-time applicants and Rs 7 lakh for others. For proceedings pending before SEBI, an application generally has to be filed within 90 days of the show-cause notice, or a supplementary notice if that is later. That limit does not apply to cases pending before the Securities Appellate Tribunal or the Supreme Court.

Applications with a settlement amount up to Rs 10 lakh can take a fast-track route if they involve no disgorgement or remedial and regulatory terms. Outlook Money reports that the fast track is meant for minor lapses such as late disclosure filings.

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Who Cannot Settle

Wilful defaulters, fraudulent borrowers and fugitive economic offenders are excluded, as are violations with a market-wide impact, large investor losses or harm to market integrity. Internal and high-powered advisory committees review applications, and a panel of SEBI whole-time members takes the final decision. A confidentiality option may be considered for applicants who substantially assist examinations or investigations.

What Replaced the 2018 Rules

The 2026 regulations repeal the 2018 settlement proceedings rules, subject to transitional provisions. Outlook Money reports that the new formula uses multipliers of 2x for independent directors, 4x for corporate bodies and 5.5x for market infrastructure institutions. Earlier IPB reporting on the regulator is on the SEBI tag page.

Where to Apply

Applications are filed through SEBI’s intermediary portal, with the calculator on the regulator’s site giving applicants an estimate of the amount before they file.

Source: SEBI settlement application page. Also based on reporting by The Tribune (ANI) and Outlook Money.

Image: Outlook Money.