SEBI’s 2026 Settlement Rules Take Effect

Overview

• The rules came into force on Saturday, November 7, 2026, and SEBI has launched online filing, a settlement-amount calculator, an explainer video, FAQs and a dedicated help desk to accept applications.
• Eligible persons and entities may apply to settle specified administrative and civil proceedings at most stages subject to prescribed conditions and fees that are non-refundable.
• SEBI fixed application fees at Rs 25,000 for natural persons and Rs 35,000 for other applicants and set minimum settlement floors of Rs 3 lakh for first-time applicants and Rs 7 lakh for others.
• Settlement amounts will be calculated by a formula that factors a base amount, stage of proceedings, the gravity of the alleged violation and aggravating or mitigating factors, and a fast-track option is available for cases with settlement amounts up to Rs 10 lakh where no disgorgement or remedial terms apply.
• An Internal Committee and a High-Powered Advisory Committee will examine applications and recommend terms to a Panel of Whole Time Members, while specified categories such as wilful defaulters, fraudulent borrowers, fugitive economic offenders and matters with large investor losses are listed as ineligible for settlement.