SEBI's Settlement of Administrative and Civil Proceedings Regulations, 2026 replace the 2018 settlement rules from 7 November 2026, according to a Corplawupdates summary of Notification SEBI/LAD-DOP/2026/318, dated 6 October (Gazette 7 October). The 7 November date is the summary's own calculation, and it advises checking the official publication.
Who can apply and when
Applications can be filed at any stage, including for appeals pending before the Securities Appellate Tribunal or the Supreme Court, and one application must cover all proceedings from the same cause of action. For matters before SEBI, the deadline is 90 days from the show-cause notice. Wilful defaulters, fraudulent borrowers and fugitive economic offenders are excluded, as are applicants whose matter is under investigation, except for confidentiality applications.
Fees and amount
The application fee is ₹25,000 for individuals and ₹35,000 for others, separate from the settlement amount. The minimum settlement amount is ₹3 lakh for a first-time applicant and ₹7 lakh for others. The amount is a base figure multiplied by a sum of factors for the stage of the case (0.20 if voluntary, up to 1.50 if pending before the Supreme Court), prior regulatory actions and aggravating or mitigating features. Interest is 9% a year until filing where no final order exists, and 9% then 12% where one does.
Fast-track and confidentiality
For specified minor defaults such as delayed disclosures, SEBI may issue a notice with 30 days to comply. Where the calculated amount is up to ₹10 lakh and no remedial terms apply, a threshold route is available. Confidentiality reductions of up to 90%, 50% or 25% depend on priority, for people giving substantial assistance.
Transition
Applicants whose terms the panel approved under the 2018 rules stay under them. Others not yet filed must apply within 90 days of commencement at an amount 20% higher.
Key numbers
- Starts: 7 Nov 2026 (Replaces the 2018 rules)
- Minimum amount: ₹3 lakh (First-time applicant; ₹7 lakh others)
- Application fee: ₹25,000 (Individuals; ₹35,000 others)
- Interest: 9% to 12% (A year, depending on final order)
What boards and CFOs should note
Three points stand out. First, the formula makes the cost of settling predictable. Second, filing earlier lowers the multiplier. Third, the summary is secondary, so check the notification before acting.
Source: Corplawupdates, October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
