SEBI Implements New Settlement Regulations 2026: Check Application Process, Fees and Deadlines

The Securities and Exchange Board of India (SEBI) has brought the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026 into force from November 7, 2026. The new regulations aim to facilitate the settlement of eligible administrative and civil proceedings through a structured process.

To make the settlement process easier for applicants, SEBI has also introduced an online settlement application facility, a settlement amount calculator, FAQs and a dedicated helpdesk.

The announcement was made through SEBI Press Release No. 70/2026 dated November 6, 2026.

SEBI Settlement Regulations 2026: Effective Date and Key Developments

SEBI notified the Settlement Regulations, 2026 on October 8, 2026. As specified in the notification, the regulations became effective on November 7, 2026.

The framework provides eligible persons with an opportunity to apply for settlement in accordance with the prescribed regulations. Applicants can use the online facilities made available by SEBI to understand the process and complete their applications.

1. Key Facilities Introduced by SEBI

SEBI has made the following facilities available on its website to support applicants:

1. FAQs on Settlement Regulations, 2026

SEBI has published a detailed FAQ document explaining the settlement framework, eligibility, application procedures, timelines and other important aspects.

2. Settlement Amount Calculator

Applicants can use the online calculator to estimate the settlement amount payable under the new regulations.

3. Online Settlement Application

An online application facility has been introduced, allowing eligible applicants to submit settlement applications through SEBI's portal.

4. Dedicated Helpdesk

SEBI has also established a helpdesk to assist applicants with filing applications, calculating indicative settlement amounts and checking the status of pending applications.

2. Important Provisions and Timelines Under the New Regulations

The FAQs issued by SEBI provide several important clarifications regarding the implementation of the 2026 framework.

The regulations also provide for different settlement routes, including suo motu settlement, settlement before issuance of a Show Cause Notice, settlement after issuance of an SCN, settlement at the appellate stage and fast-track settlement.

3. Fast-Track Settlement Facility

One of the notable features of the 2026 framework is the provision for fast-track settlement.

SEBI's FAQs explain two categories of fast-track settlement:

• Violation-based fast-track settlement: This covers specified violations, including certain disclosure-related defaults such as delays in filing returns, reports and documents.
• Monetary threshold-based fast-track settlement: Applications involving a settlement amount of up to ₹10 lakh may be considered under this route, subject to the prescribed conditions.

For monetary threshold-based fast-track settlement, a separate application is not required. Eligible pending applications may be processed through this route where the specified conditions are satisfied.

4. How is the Settlement Amount Calculated?

The 2026 Regulations prescribe a formula for determining the settlement amount. The calculation takes into account the base amount and various factors relating to the proceedings and the nature of the default.

The prescribed formula is:

SA = B x (S+R+G+A-M) 

Where:

• SA: Settlement Amount
• BA: Base Amount
• S: Stage of Proceeding
• R: Regulatory Action Factor
• G: Gravity Factor
• A: Aggravating Factors
• M: Mitigating Factors

The FAQs also clarify that the settlement amount cannot be lower than ₹3 lakh for a first-time applicant or ₹7 lakh for other applicants, as applicable under the prescribed framework.

Applicants can use SEBI's online settlement calculator to estimate the amount payable.

5. Deadline for Pending Settlement Applications Under the Earlier Regulations

The transition from the 2018 Regulations to the 2026 Regulations is another important aspect for applicants.

As clarified in SEBI's FAQs, persons having specified proceedings pending before SEBI as on November 7, 2026, may apply for settlement under the new framework on or before February 4, 2027.

The FAQs also explain how applications pending under the earlier 2018 Regulations will be dealt with:

• Where the recommendations of the High Powered Advisory Committee were approved by the Panel of Whole Time Members before November 7, 2026, the 2018 Regulations will continue to apply.
• Where the recommendations were awaiting approval, applicants will be given an option to proceed under either the 2018 or 2026 Regulations, within 30 days of receiving SEBI's notice.
• Where the High Powered Advisory Committee had not made any recommendation as on November 7, 2026, the 2026 Regulations will govern the settlement.

Further, applicants whose earlier applications were not filed, rejected, returned or withdrawn under the 2018 Regulations may also be eligible to apply under the 2026 framework within the prescribed 90-day period.

6. Helpdesk for Settlement-Related Queries

To provide assistance with the new settlement process, SEBI has established a dedicated email-based helpdesk.

Applicants can contact SEBI at:

Email: settle-help@sebi.gov.in

The helpdesk can be approached for assistance relating to:

• Filing settlement applications.
• Calculating indicative settlement amounts under the new regulations.
• Checking the status of pending settlement applications.

SEBI has indicated that it will endeavour to respond to specific assistance requests within five working days.

7. Where Can Applicants Access the New Facilities?

Applicants can access the following resources through SEBI's website:

Conclusion

With the Settlement Regulations, 2026 now in force, SEBI has introduced an updated framework for settling eligible administrative and civil proceedings. The availability of an online application facility, settlement amount calculator, detailed FAQs and a dedicated helpdesk is expected to make the application process more accessible and easier to navigate.

Eligible applicants, including those with proceedings pending under the earlier framework, should carefully review the applicable provisions and transitional timelines before submitting their applications.