SEBI has proposed amendments to the Settlement Proceedings Regulations, 2018, introducing a revised penalty formula, extended filing timelines, and streamlined procedures. The move aims to enhance transparency and efficiency in enforcement settlements.
SEBI Proposes Overhaul of Settlement Proceedings Regulations, 2018
On 13 October 2026, SEBI issued a consultation paper proposing a comprehensive revision of the SEBI (Settlement Proceedings) Regulations, 2018. The proposed amendments aim to modernize enforcement mechanisms by introducing a revised penalty calculation methodology, expanding the time window for applicants to file settlement requests, and simplifying procedural requirements for resolution.
The regulator has proposed changes to disgorgement norms, allowing for more accurate computation of illicit gains. The draft also introduces greater clarity on eligibility criteria, exclusion categories, and timelines for concluding settlement proceedings. Further, the reforms suggest streamlining documentation and increasing the use of digital submission platforms to reduce delays.
For practitioners, these changes signal a shift toward greater predictability in settlement outcomes. The revised framework may incentivize earlier engagement with SEBI's enforcement division, particularly in complex market abuse and disclosure violation cases. Interested stakeholders are invited to submit comments within 30 days of the consultation paper’s publication.
Citations
- SEBI (Settlement Proceedings) Regulations, 2018 (as proposed to be amended in 2026)
