India’s market regulator has switched on a new way to settle securities cases. From today, 7 November 2026, the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026 come into force, replacing the 2018 framework that governed settlements for the past eight years. Along with the new rules, SEBI has opened an online application facility, a settlement amount calculator, FAQs and a dedicated help desk on its website.
SEBI announced the commencement in a press release on Friday, 6 November. The regulations were notified on 8 October 2026. For brokers, listed companies, mutual funds and advisers facing proceedings, the change decides how quickly, and at what cost, an alleged violation can be put behind them.
What changes from today
Under the new framework, an eligible entity can apply to settle specified administrative and civil proceedings at any stage. The application must carry the prescribed undertaking and waivers, along with the basis on which the settlement amount has been computed. The old 2018 regulations stand repealed, subject to transitional provisions for cases already in the pipeline.
The biggest practical change is that the process is now fully digital. Applicants can file online, work out the likely amount in advance through the calculator, and check the FAQs before they apply. SEBI has also set up a help desk for queries.
How much will a settlement cost
The amount is no longer guesswork. Regulation 10 prescribes a formula: the settlement amount equals the base amount multiplied by factors covering the stage of proceedings, the applicant’s regulatory history, the gravity of the alleged violation, and any aggravating or mitigating circumstances.
- Application fee: Rs 25,000 for individuals and Rs 35,000 for other applicants. The fee is non-refundable.
- Minimum settlement amount: Rs 3 lakh for first-time applicants and Rs 7 lakh for others.
- Early application pays less: a voluntary application, made before proceedings gather pace, carries a lower stage factor of 0.20 in the formula.
- Fast-track route: applications involving settlement amounts of up to Rs 10 lakh, where no disgorgement or remedial terms are involved, can go through a fast-track process.
The formula approach is meant to bring predictability. An applicant who settles early and has a clean record should, in principle, pay less than a repeat offender who waits until late in the proceedings.
The 90-day window and the new settlement notice
Timing is now tightly defined. In most cases, a settlement application must be filed within 90 days from the date the show-cause notice, or a supplementary show-cause notice, is served, whichever is later. For proceedings already pending when the new rules commence, applicants get 90 days from today, 7 November, provided no application was filed earlier or rejected, returned or withdrawn under the 2018 regulations.
There is also a new early-warning step. Before issuing a show-cause notice, SEBI may send a settlement notice setting out the probable charges and the enforcement action it is considering. The entity then gets 60 days to apply for settlement, so matters can close before they harden into formal proceedings.
The 90-day limit does not apply to applications concerning specified proceedings pending before the Securities Appellate Tribunal or the Supreme Court.
What cannot be settled
The new framework draws clear lines. Certain proceedings cannot ordinarily be settled, including cases where a settlement application for the same alleged default was rejected earlier, cases where an examination, investigation, inspection or audit is still pending, and applications involving entities categorised as wilful defaulters, fraudulent borrowers or fugitive economic offenders.
Settlement is designed for procedural and technical lapses, and for cases where a quick resolution serves investors better than years of litigation. It is not an escape route for serious fraud or deliberate default.
Why this matters for investors and markets
For ordinary investors, the new rules should mean faster closure of cases affecting companies they hold shares in. Long proceedings create uncertainty around a stock, and uncertainty weighs on prices. A predictable route lets companies clean up and move on, while SEBI keeps its enforcement bandwidth for the cases that truly need it.
For intermediaries, a published formula, an online calculator and a fast-track route for small amounts remove much of the opacity of the old framework. The trade-off is discipline: miss the 90-day window, and the settlement door closes.
FAQs
When do SEBI’s new settlement regulations come into force?
They come into force today, 7 November 2026. SEBI notified the regulations on 8 October 2026 and confirmed commencement through press release PR No. 70/2026 on 6 November.
How do I apply for settlement under the new rules?
Through the online application facility on SEBI’s official website, sebi.gov.in. The site also hosts a settlement amount calculator, FAQs and a help desk for applicants.
What is the fee for a settlement application?
Rs 25,000 for individuals and Rs 35,000 for other applicants. The fee is non-refundable.
What is the minimum settlement amount?
Rs 3 lakh for first-time applicants and Rs 7 lakh for other applicants, calculated under the formula in Regulation 10 of the new rules.
How long do I have to file a settlement application?
Generally 90 days from the service of the show-cause notice, or a supplementary one, whichever is later. For proceedings pending as of 7 November 2026, the window runs from today.
Settlement is a practical tool, not a clean chit. But for eligible cases, the path from notice to closure just got shorter, clearer and fully online.
