SEBI has approved a new framework for settlement proceedings, introducing changes to how settlement amounts are calculated and creating a fast-track route for certain eligible cases. The changes were approved at SEBI's Board meeting on September 24, 2026.
What are SEBI settlement proceedings?
Settlement proceedings provide a mechanism for resolving eligible regulatory proceedings under SEBI's settlement framework. SEBI has now approved a revised framework intended to make the process more structured, including changes to the calculation of settlement amounts.
Formula-based settlement amounts
One of the key changes is the introduction of a formula-based approach for determining settlement amounts. The framework takes into account specified factors while calculating the amount payable under settlement proceedings. SEBI has also provided for separate treatment of wrongful gains, along with factors relating to the nature and circumstances of a matter.
New fast-track settlement route
SEBI has approved a fast-track settlement mechanism for certain eligible disclosure-related cases. The route will apply where the settlement amount is up to ₹10 lakh, subject to the conditions prescribed under the framework. The objective is to provide a separate process for eligible cases that meet the specified criteria.
Settlement notice before a show-cause notice
The revised framework also provides for a settlement notice in specified circumstances before a show-cause notice is issued. This creates an additional stage through which eligible matters can potentially enter the settlement process.
Does this apply to every SEBI violation?
No. The settlement framework applies to matters that meet the relevant eligibility and regulatory conditions. The introduction of a fast-track route does not mean that every regulatory violation will qualify for the simplified process.
What does the new framework change?
Broadly, SEBI's approved changes cover:
- A formula-based approach to settlement amounts
- Treatment of wrongful gains
- A fast-track route for specified eligible cases
- Changes to the settlement process and notices
- Specific provisions relating to certain regulatory matters
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