India’s stock market investors will have to follow a new settlement framework introduced by the Securities and Exchange Board of India (SEBI). The changes are aimed at improving the settlement process, making transactions more efficient and strengthening investor protection.The Securities and Exchange Board of India (SEBI) has implemented its new settlement framework from November 7, 2026. The revised regulations will allow eligible individuals and organisations to settle certain administrative and civil proceedings by paying a prescribed settlement amount, subject to specific conditions.
Under the new rules, individuals will have to pay a non-refundable application fee of ₹25,000, while companies, intermediaries and other entities will be required to pay ₹35,000. The minimum settlement amount has been fixed at ₹3 lakh for first-time applicants and ₹7 lakh for other applicants. However, the actual amount may be higher depending on the seriousness of the violation and the stage of proceedings.
The new framework also introduces an online application facility and a settlement amount calculator to make the process easier and more transparent. Applicants will generally have 90 days from receiving a show-cause notice to submit their settlement applications. SEBI may also issue a settlement notice before a formal show-cause notice, giving eligible applicants 60 days to apply.
The revised regulations replace the earlier SEBI Settlement Proceedings Regulations, 2018. However, not every violation will qualify for settlement. Cases involving serious market misconduct, widespread investor losses or threats to market integrity may be excluded. The new framework aims to simplify regulatory proceedings, improve transparency and ensure faster resolution of eligible cases.
