Proposed 2026 amendments to SEBI's Settlement Proceedings Regulations introduce revised penalty calculations, extended timelines, and streamlined processes for disgorgement and compliance.
SEBI Overhauls Settlement Proceedings Regime
SEBI has proposed significant amendments to its Settlement Proceedings Regulations, 2018, enhancing procedural efficiency and deterrence. The 2026 draft rules revise the penalty formula, expand scope for disgorgement of illicit gains, extend timelines for filing settlement applications, and introduce standardised documentation requirements.
Key changes include clearer criteria for early resolution incentives and improved coordination with investigations under SEBI Act, 1992. The proposals aim to reduce backlog, improve settlement finality, and enhance deterrence by aligning monetary terms with market impact.
Practitioners should note the potential for faster resolution of enforcement actions, though with steeper disgorgement expectations. These changes may significantly impact strategy in ongoing and future settlement discussions with the regulator.
