The Securities and Exchange Board of India (SEBI) on November 06, 2026, issued the Frequently Asked Questions on the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026.
The following FAQs are as follows:
• What is settlement under the securities laws and what is the current legal framework for availing the settlement of administrative and civil proceedings in SEBI?
1. Section 15JB of the SEBI Act, 1992, Section 23JA of the Securities Contracts (Regulation) Act, 1956 and Section 19-IA of the Depositories Act, 1996 inter alia provide for the following:
a. Any person may file an application before SEBI proposing settlement of specified proceedings initiated or that may be initiated by SEBI;
b. SEBI may agree to the settlement proposal on payment of such sum and on such other terms as may be determined by SEBI in accordance with the Regulations.
• What are Specified Proceedings?
Specified Proceedings are those enforcement proceedings that may be initiated by SEBI or have been initiated and are pending before SEBI, or any appeal pending before the Hon’ble SAT or the Hon’ble Supreme Court, as defined in reg. 2(1)(l) of the 2026 Regulations.
• How the transitional provisions of the 2026 Regulations affect the settlement applications pending under the 2018 Regulations?
I. Reg. 44(i) provides that if the recommendations of the High Powered Advisory Committee are accepted by the Panel of Whole Time Member before November 07, 2026, then 2018 Regulations shall be applicable.
II. Reg. 44(ii) provides that if the recommendations of the High Powered Advisory Committee are yet to be approved by the Panel of Whole Time Member on or before November 06, 2026, then the Applicant shall be given an option to be exercised by the Applicant within 30 days from the receipt of notice to continue either under the 2018 Regulations or afresh under the 2026 Regulations.
III. Reg. 44(iii) provides that if the High Powered Advisory Committee is yet to make any recommendation as on November 07, 2026, then the settlement shall be governed by the 2026 Regulations.
