SEBI answers 37 questions on the new Settlement Regulations, 2026; late applicants have until 4 February 2027
TaxByKK · Compliance News · taxbykk.com13 Nov 2026
In short
SEBI has published 37 frequently asked questions on the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, which apply from 7 November 2026 and replace the 2018 settlement regulations. The FAQs cover who can apply, when, the fee, how the settlement amount is worked out, interest, fast-track settlement, the committees that decide, and when a settlement order can be revoked. SEBI says they are a simple explanation and not an interpretation of law or a binding opinion.
- Authority
- Securities and Exchange Board of India
- Document
- FAQs on the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026
- Regulations apply from
- 7 November 2026 (the 2018 Regulations ran from 1 January 2019 to 6 November 2026)
- Length
- 14 pages, 37 questions
- Date
- The FAQ text carries no date; listed around 13 November 2026
- Status
- Guidance; not an interpretation of law or a binding opinion
- Application fee
- Rs 25,000 for a natural person; Rs 35,000 for others
- Help desk
- settle-help@sebi.gov.in (SEBI aims to reply within 5 working days)
What changed
| Item | Before | Now |
|---|---|---|
| Who may still apply (reg. 4(3)) | - | A person who had not applied, or whose application was rejected, returned or withdrawn under the 2018 Regulations, may apply on or before 4 February 2027 |
| Pending 2018 applications (reg. 44) | - | If the committee's recommendation was accepted by the Panel before 7 November 2026, the 2018 Regulations continue; if not yet approved by 6 November, the applicant has 30 days from SEBI's notice to choose the 2018 or the 2026 route; if no recommendation was made by 7 November, the 2026 Regulations apply |
| Settlement amount (reg. 10) | - | Base amount x (stage + regulatory action + gravity + aggravating - mitigating factors); a net factor below one counts as one; floor of Rs 3 lakh for a first-time applicant and Rs 7 lakh for others; base amount doubled for a lead conspirator, mastermind or key operator |
| Base amount multipliers (reg. 11) | - | Minimum statutory penalty x 2 (independent director), 3 (non-executive director), 3.5 (executive director, promoter in control or key managerial person), 2.5 (other natural person), 4 (body corporate, intermediary, pooled vehicle), 5.5 (market infrastructure institution) |
| Interest (reg. 20) | - | 9% from the date of each violation to the date of application; where a final order is passed, 9% to the order and 12% after; no interest on unpaid interest |
| Fast track (regs. 27, 28) | - | Violation-based (for example delayed disclosures) with 30 days to apply; and a monetary track where the amount is up to Rs 10 lakh with no disgorgement or remedial terms, which skips the High Powered Advisory Committee |
| Re-filing (regs. 6, 7) | - | An application withdrawn or rejected can be filed again only at the same or a later stage (after rejection, once the reason falls away) with 20% added to the settlement amount |
The document is a set of answers and does not itself change the regulations. It gives the timelines in a table (60 days from a pre-notice, 90 days from a show cause notice, 15 days to re-file a returned application, 21 days for revised terms, 30 days to pay). It says SEBI may relax most timelines within 30 days after expiry, but not the filing periods in regulations 4(1) and 5(1), and that extra time to pay costs 1% more. For the full rule, read the regulations.
Who it applies to
- Persons facing or likely to face SEBI proceedings, and the lawyers, CAs and CSs advising them
- Listed companies, intermediaries, promoters and directors who may want to settle disclosure lapses
- Market infrastructure institutions
What to do
- Where an application was not filed, or was returned, rejected or withdrawn under the 2018 Regulations, note 4 February 2027 as the outer date.
- Where a 2018 application is pending without Panel approval, answer SEBI's notice within 30 days on which regime to follow.
- Use the online calculator SEBI refers to in the FAQs to estimate the amount before applying.
- Check whether a delayed-disclosure case fits the fast-track route.
Reference
SEBI, Frequently Asked Questions on the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, listed November 2026.
Issued by SEBI (sebi.gov.in)
Read the official PDF: SEBI Settlement Regulations FAQsWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
When do the 2026 settlement regulations apply?
From 7 November 2026; the 2018 Regulations applied until 6 November 2026.
Until when can an earlier non-applicant apply?
On or before 4 February 2027, under regulation 4(3), as the FAQs state.
What is the fee?
Rs 25,000 for a natural person and Rs 35,000 for others.
Are the FAQs binding?
No. SEBI says they are not an interpretation of law or a binding opinion.