SEBI settlement rules from November 7: Who can apply online, how much to pay and the 90-day deadline explained

The Securities and Exchange Board of India (SEBI) has brought its revised settlement regulations into force from November 7, 2026, allowing eligible individuals and entities to settle specified administrative and civil proceedings under a revised framework. The new rules introduce changes to application fees, minimum settlement amounts and the timelines for filing applications, while providing separate fast-track mechanisms for certain violations.

The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, were notified on October 8 and replace the 2018 settlement regulations. Alongside the new framework, the regulator has made an online settlement application facility, a settlement amount calculator and frequently asked questions (FAQs) available on its website.

For entities and individuals facing regulatory proceedings, the changes are important because they specify how much applicants must pay, when they can seek settlement and which cases qualify for faster processing.

The revised regulations prescribe a non-refundable application fee of ₹25,000 for natural persons and ₹35,000 for other applicants.

This fee is separate from the settlement amount payable to resolve the proceedings.

SEBI has also prescribed minimum settlement amounts:

The actual settlement amount will be calculated using a formula that considers the base amount, stage of proceedings, regulatory action, gravity of the alleged violation and aggravating and mitigating factors.

The formula prescribed under Regulation 10 is:

Settlement amount = Base amount × (Stage of proceeding + Regulatory action factor + Gravity factor + Aggravating factors – Mitigating factors).

The amount cannot fall below the applicable minimum of ₹3 lakh or ₹7 lakh.

Under Regulation 4, applicants generally have 90 days from the date of service of the show-cause notice or supplementary show-cause notice to apply for settlement.

For specified proceedings already pending before SEBI on November 7, 2026, a separate transitional provision applies. Eligible applicants who have not filed an application, or whose earlier application was rejected, returned or withdrawn under the 2018 regulations, can apply under the new framework within 90 days of commencement.

This means the deadline for such applications is February 4, 2027.

However, the transitional provision comes with an additional cost: the settlement amount will be 20% higher than the amount otherwise calculated under the new framework.

For proceedings pending before the Securities Appellate Tribunal (SAT) or the Supreme Court, an application can be filed during the pendency of the appeal.

SEBI has also introduced a settlement notice mechanism before the issuance of a show-cause notice. Under this provision, eligible applicants get 60 days from receiving the notice to submit a settlement application.

This mechanism is not available where interim directions or prosecution are contemplated.

The new regulations provide two types of fast-track settlement mechanisms.

Violation-based fast-track settlement: This applies to specified categories of violations, including delayed disclosures and filing of returns, reports and documents. Applicants generally have 30 days from receiving the notice to apply. SEBI may extend this by another 15 days.

Monetary threshold-based fast-track settlement: This applies where the settlement amount is up to ₹10 lakh and the matter can be resolved without disgorgement or remedial and regulatory terms.

An important distinction is that applicants do not need to file a separate application for the monetary threshold-based mechanism. If the Internal Committee finds that a pending application meets the prescribed conditions, it can be processed under this route.

Such applications are placed directly before the Panel of Whole Time Members without being referred to the High Powered Advisory Committee.

The new framework retains restrictions on settling certain categories of proceedings.

These include cases involving applicants classified as wilful defaulters, fraudulent borrowers or fugitive economic offenders. Settlement is also restricted where an audit, investigation, inspection or examination concerning the same cause of action is pending, subject to the specified exceptions.

Further, proceedings involving defaults with market-wide impact, large-scale investor losses or an adverse effect on market integrity may not be settled unless these concerns can be adequately addressed through monetary and remedial or regulatory terms.

SEBI can also reject applications if applicants fail to comply with the prescribed requirements or settlement conditions.

SEBI has made the settlement application facility available on its website, along with a calculator to help applicants estimate the amount payable under the revised formula.

The regulator has also published FAQs explaining the application process, eligibility conditions, settlement timelines and the calculation methodology. An explanatory video is available to guide applicants through the calculator.

Applicants can access these facilities through SEBI's official website under the settlement application section.

The application process does not guarantee acceptance. Applications are examined by an Internal Committee and, where applicable, a High Powered Advisory Committee before the Panel of Whole Time Members takes a decision.

Importantly, filing a settlement application does not prevent SEBI from issuing interim civil or administrative directions to protect investors and maintain market integrity.

Kirti jha

Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.

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