SEBI brings new securities settlement regulations into force nationwide

New regulations governing settlement of specified administrative and civil proceedings took effect across India on 7 November 2026. The Securities and Exchange Board of India replaced its 2018 framework and made online filing available. The revised framework includes a calculator for settlement amounts. The calculation takes into account factors such as the stage of the proceedings, the seriousness of the alleged breach and circumstances that may increase or reduce the amount.

The rules provide both a violation-based fast-track route and a route based on the settlement amount. Under the latter route, a case may be eligible where the settlement amount is no more than ₹10 lakh and neither disgorgement nor remedial or regulatory terms are involved. The framework also provides for review by an Internal Committee and a High-Powered Advisory Committee. Submission of a settlement application does not oblige the regulator to accept it.

Facts to remember

• Commencement: 7 November 2026; the 2026 regulations replace the 2018 settlement regulations.
• Application fees are ₹25,000 for individuals and ₹35,000 for other applicants.
• One fast-track route applies subject to conditions and a threshold of ₹10 lakh in settlement amount.
• Section 15JB of the Securities and Exchange Board of India Act, 1992 concerns settlement of administrative and civil proceedings.

Background

Section 15JB provides a statutory basis for applying to settle certain proceedings through the regulator. The regulations set out how those requests are made and examined. An application fee covers the filing step; a settlement amount is determined separately under the applicable rules. The two figures should therefore not be treated as interchangeable.

Why it matters for exams

For UGC-NET Law and CLAT Business Law, revise the relationship between statutory powers and delegated regulations, and distinguish filing fees from settlement amounts.