Mumbai, October 10, 2026 (Yes Punjab News)
The Securities and Exchange Board of India (SEBI) has notified revised settlement regulations to simplify the calculation of settlement amounts and introduce fast-track procedures for eligible cases involving amounts of up to Rs 10 lakh.
The Settlement Regulations, 2026, aim to make the framework simpler and more predictable, the market regulator said in its notification.
Under the revised rules, settlement terms will comprise the settlement amount, disgorgement of wrongful gains wherever applicable, and remedial and regulatory requirements, which were previously referred to as non-monetary terms.
The regulations separately provide for the disgorgement of wrongful gains to prevent such amounts from being counted twice while calculating the settlement amount.
The revised formula links the settlement amount to a base amount derived from the minimum penalty prescribed for the relevant violation under securities laws. Factors determining the base amount include the stage of proceedings, regulatory action, gravity of the violation, aggravating and mitigating circumstances, and legal costs.
Wrongful gains, losses avoided and losses caused to investors will be excluded from the base amount calculation and dealt with separately through disgorgement, where applicable.
SEBI has also introduced two categories of fast-track settlement: violation-based and monetary-threshold-based. Eligibility will depend not only on the amount involved but also on the nature of the violation, including certain disclosure-related breaches.
Under the monetary-threshold route, cases with settlement amounts of Rs 10 lakh or less will move directly from the internal committee to a panel of whole-time members.
For violation-based fast-track settlements, SEBI will issue a notice offering the concerned entity an opportunity to settle the matter by paying the specified amount. The panel will pass the settlement order after the payment is made.
The revised framework also addresses settlements in cases involving misrepresentation of financial statements or diversion of funds, subject to appropriate remedial and regulatory measures. These may include disclosure requirements and steps to recover diverted funds.
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