SEBI Settlement Regulations 2026 Explained

SEBI’s 2026 Settlement Regulations, effective 7 November 2026, allow eligible persons to settle specified enforcement proceedings by paying the prescribed amount and accepting agreed terms, subject to SEBI’s approval. They replace the 2018 framework.

Filing fees are ₹25,000 for individuals and ₹35,000 for others, with minimum settlement amounts of ₹3 lakh for first-time applicants and ₹7 lakh for others. Cases pending under the 2018 rules must be filed by 4 February 2027, with a 20% higher settlement amount.

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Key Takeaways

• New SEBI settlement rules effective 7 November 2026, replacing the 2018 rules.
• Fees – ₹25,000 for individuals. ₹35,000 for others.
• Minimum settlement – ₹3 lakh for first-time applicants. ₹7 lakh for others.
• Legacy cases must apply by 4 February 2027, with a 20% higher amount.
• Settlements may include disgorgement, interest, disclosures, and remedial terms.
• Fast-track route applies to certain disclosure violations and cases up to ₹10 lakh.

What are SEBI Settlement Regulations 2026?

They are SEBI’s rulebook for settling specified administrative and civil proceedings through agreed monetary and non-monetary terms. They offer a structured alternative to prolonged adjudication, but settlement is a regulatory resolution, not an automatic escape from enforcement.

SEBI notified the regulations in October 2026, and Press Release No. 70/2026 confirmed commencement on 7 November 2026. Applications pass through SEBI’s Internal Committee, a High Powered Advisory Committee (HPAC) and finally the Panel of Whole Time Members, which accepts or rejects the terms.

What can and cannot be Settled?

Specified proceedings that SEBI has started, or may start, can be settled, including eligible appeals pending before the Securities Appellate Tribunal (SAT) or the Supreme Court. Your filing window depends on where the case stands.

Settlement is not available where an audit, investigation, inspection or examination on the same cause of action is pending (except confidentiality applications). It is also closed to wilful defaulters, fraudulent borrowers and fugitive economic offenders.

Cases with market-wide impact, large investor losses or damage to market integrity may be declined unless monetary and remedial terms can fix the harm.

SEBI Settlement Fees 2026: How much does it Cost?

You must pay a non-refundable application fee through SEBI’s designated payment gateway when you file. This is separate from the settlement amount, which is calculated on its own.

The fees are higher than before – under the 2018 rules they were ₹15,000 and ₹25,000.Someone against whom no adverse order has been passed by an adjudicating officer or SEBI, and who has never obtained a SEBI settlement order, as on the filing date.

Why the ₹3 Lakh Minimum Matters

Paying ₹3 lakh will not automatically close your case. The final amount comes from a formula, and if the result is lower than the floor, the floor applies.

Settlement Amount (SA) = BA × (S + R + G + A − M)

• BA = Base Amount (statutory minimum penalty × applicant multiplier)
• S = Stage of proceeding
• R = Regulatory action factor
• G = Gravity of the default
• A = Aggravating factors
• M = Mitigating factors

If the bracket totals less than 1, it is treated as 1. A person named as lead conspirator, mastermind or key operator has the base amount doubled.

Stage matters too. Reported values rise as a case progresses:

Example:

If a first-time individual’s formula result is ₹2.5 lakh, the payable amount is ₹3 lakh because of the floor. Disgorgement, interest, legal costs and remedial terms come on top where applicable. This is illustrative, not advice.

Deadline: Who Must Apply by 4 February 2027?

Anyone with a specified proceeding pending before SEBI on 7 November 2026, who either never applied or whose 2018-rules application was rejected, returned or withdrawn, must file by 4 February 2027.

SEBI’s FAQ confirms this is 90 days from 7 November 2026, and the settlement amount is 20% higher.This is a one-time transitional window, not a deadline for every future case.

Important Note:

SEBI cannot relax the 90-day SCN window or the 60-day pre-SCN window. Other timelines can be relaxed only within 30 days after expiry. Late payment can be extended by up to 30 days, but the settlement amount rises 1%.

Fast-Track Settlement: A Shorter Route

SEBI offers two fast-track routes, but neither guarantees approval.

Settlement Terms: It is not always just a Payment

Settlement terms can include the settlement amount (with legal costs), disgorgement and Remedial and Regulatory Terms (RRTs). RRTs may include disclosures, bringing back siphoned funds, clawbacks, investor refunds, suspension or debarment.

Disgorgement applies wherever the gain or loss can be quantified. Interest runs from the date of the violation until you file. It is 9% where no final order exists; if a final order has been passed, 9% applies until that date and 12% after.

Should You Settle? Benefits and Risks

Settlement suits applicants who want certainty and can meet the terms.

• Filing does not stop SEBI from issuing interim directions.
• Withdrawal or rejection revives the proceeding, and refiling attracts 20% extra.
• Facts established or admitted in other proceedings on the same cause of action are deemed admitted.
• SEBI can revoke an order for non-compliance or untrue disclosures, after a hearing.

How to File a SEBI Settlement Application

1. Club all proceedings on the same cause of action into one application.
2. Check eligibility, especially pending investigations and excluded categories.
3. Estimate your amount using SEBI’s online settlement calculator.
4. Prepare the application (Schedule I, Part A), undertaking and waiver (Part B) and computation basis (Part C).
5. Pay ₹25,000 or ₹35,000 through the payment gateway.
6. If SEBI returns the application, file a revised one within 15 days or it is deemed withdrawn.
7. Submit any revised settlement term within 21 days of the Internal Committee meeting.
8. Pay within 30 days of the demand notice, which SEBI issues within 10 days of the Panel’s decision.

Keep notices, orders, category details and, for companies, a board resolution ready.

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SEBI Settlement Regulations 2026 vs 2018

Conclusion

SEBI’s Settlement Regulations 2026 give market participants a clearer, more structured route to close enforcement proceedings, but they reward speed and preparation. The ₹3 lakh and ₹7 lakh floors, the ₹25,000 and ₹35,000 fees and the 20% surcharge on legacy cases mean timing directly affects cost.

If you have a case pending before SEBI, 4 February 2027 is the date to circle, and filing early lowers both the stage factor and interest. Check eligibility, run the calculator, understand the non-monetary terms and take qualified securities-law advice before you apply.