The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026 take effect on 7 November 2026. They replace the 2018 settlement regulations and govern how eligible persons may seek settlement of specified proceedings without waiting for the full enforcement process to conclude.
Who should review the new rules?
The framework matters to listed entities, intermediaries, promoters, directors, officers, investors and other persons facing—or expecting—specified administrative or civil proceedings under securities laws administered by SEBI. Settlement is not automatic, and the framework does not make every alleged default eligible.
The Panel of Whole Time Members retains discretion to accept or reject an application in the interests of investors and market regulation. Filing an application also does not prevent SEBI from issuing interim directions where required.
The principal filing windows
| Situation | Deadline or consequence |
|---|---|
| After a show-cause notice | Generally, the application must be made within 90 days from service of the show-cause notice or supplementary show-cause notice, whichever is later. |
| Matter pending before SAT or the Supreme Court | The above 90-day limitation does not apply to a specified proceeding pending before the Tribunal or Supreme Court. |
| Pre-SCN settlement notice | Where SEBI issues a settlement notice before a show-cause notice, the entity has 60 days from receipt to apply, subject to the regulatory exceptions. |
| Incomplete application returned by SEBI | A complete and revised application may be submitted within 15 days from SEBI’s communication; otherwise it is deemed withdrawn. |
The special window for pending matters
A separate transition route applies to a specified proceeding pending on 7 November 2026 where a settlement application was either never filed, or was rejected, returned or withdrawn under the 2018 regulations.
The application must be filed within 90 days from commencement. The settlement amount for this route is 20% higher than the amount otherwise calculated under Regulation 10. The regulation states the period rather than a separately printed calendar deadline, so applicants should calculate it conservatively and file well before the window closes.
Application fees and minimum amounts
| Item | Amount |
|---|---|
| Non-refundable application fee — natural person | ₹25,000 |
| Non-refundable application fee — other applicant | ₹35,000 |
| Minimum settlement amount — first-time applicant | ₹3 lakh |
| Minimum settlement amount — other applicant | ₹7 lakh |
The settlement amount is not simply the application fee. It is computed under the regulatory formula, taking account of the stage of proceedings and relevant gravity, aggravating and mitigating factors. Disgorgement, remedial directions, regulatory conditions and disclosures may also form part of the terms.
When settlement may be unavailable
The regulations identify proceedings that cannot or may not be settled. Important examples include:
- Repeat rejection for the same default. A previously rejected application is ordinarily barred, subject to the stated transition and later-stage exceptions.
- Pending fact-finding. An application is ordinarily unavailable while an examination, investigation, inspection or audit for the cause of action is pending, except for a confidentiality application.
- Disqualified applicants. Wilful defaulters, fraudulent borrowers and fugitive economic offenders are excluded.
- Serious market impact. SEBI may decline settlement where the alleged default has market-wide impact, caused losses to a large number of investors or affected market integrity.
How the online filing works
SEBI’s settlement page now provides the filing portal, “Know Your Amount” calculator, settlement schemes and FAQs. The online portal states that, after successful payment of the non-refundable application fee, the physical application with the necessary documents and payment proof must reach SEBI’s Settlement Division within seven calendar days.
The portal also requires the proposed settlement amount to be at least ₹3 lakh and accepts certified copies of the prescribed Form A, notices, appeal or orders and other relevant documents, subject to its upload specifications.
What should an affected person do?
- Fix the procedural stage. Record the dates of every notice, supplementary notice, order and appeal before calculating the filing window.
- Test eligibility before paying. Review the exclusions, prior applications and any ongoing investigation, inspection or audit.
- Check the transition route immediately. Pending legacy matters may have a one-time 90-day opportunity but carry the 20% uplift.
- Calculate the full exposure. Use SEBI’s calculator, then separately consider disgorgement and possible remedial or regulatory terms.
- Prepare both filing legs. Complete the online process and arrange delivery of the signed physical set within the portal’s seven-calendar-day requirement.
- Preserve proof. Retain payment, submission, courier and delivery acknowledgements and a complete copy of every undertaking and waiver.
Reviewed on 7 November 2026. Settlement involves waiver of procedural rights and case-specific consequences; an applicant should obtain securities-law advice before filing or accepting terms.