Time limits for filing a settlement application
| Situation | Time limit |
|---|---|
| Proceedings pending before SEBI after a show cause notice | 90 days from service of the SCN or supplementary SCN, whichever is later |
| Pre-show-cause settlement notice from SEBI | 60 days from receipt |
| Eligible proceedings already pending when the regulations commence | 90 days from commencement |
| Violation-based fast-track settlement notice | 30 days from receipt, extendable by up to 15 days for recorded reasons |
How the settlement amount is worked out
A base amount adjusted for the stage of proceedings, prior regulatory actions, gravity of the violation, and aggravating and mitigating factors. Minimum settlement amount of ₹3 lakh for first-time applicants and ₹7 lakh for other applicants. Settlement terms may also include disgorgement of wrongful gains and remedial and regulatory terms, which replace the earlier "non-monetary terms".
Two fast-track routes
| Route | When it applies |
|---|---|
| Violation-based fast track (Regulation 27) | Specified defaults such as delayed disclosures, incorrect disclosure formats and delayed statutory compliance; SEBI may issue a settlement notice before starting proceedings |
| Monetary-threshold fast track (Regulation 28) | Settlement amount up to ₹10 lakh with no disgorgement or remedial and regulatory terms; the application goes directly from the Internal Committee to the Panel of Whole Time Members |
What listed companies and their advisers should do
Diarise the 90-day window from the date any SCN or supplementary SCN is served. Respond within 30 days to any violation-based fast-track notice for disclosure or filing delays. Review pending SEBI proceedings for the 90-day window from commencement of the new regulations. Factor disgorgement and remedial terms, not just the settlement amount, into decisions.
2018 regulations replaced
Frequently Asked Questions
The SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, notified on 6 October 2026, which replace the SEBI (Settlement Proceedings) Regulations, 2018.
90 days from service of the show cause notice or supplementary show cause notice, whichever is later.
₹3 lakh for first-time applicants and ₹7 lakh for other applicants.
There are two routes: a violation-based fast track for specified defaults such as delayed disclosures (30 days to respond), and a monetary fast track for settlement amounts up to ₹10 lakh without disgorgement or remedial terms.
