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Home / SEBI & Capital Markets / SEBI Settlement & Compounding
Last updated: 2 October 2026
When SEBI issues a show cause notice, the noticee may be able to settle the proceedings without admitting or denying the findings. Expertvuw’s team helps assess eligibility, organise records and prepare the settlement application, working with advocates who represent you before SEBI.
The SEBI (Settlement Proceedings) Regulations, 2018 allow a person facing SEBI proceedings to apply to settle them by paying a settlement amount and/or agreeing to other terms, without admitting or denying the findings. Settlement covers administrative and civil proceedings; criminal offences under securities laws may be compounded by a court under section 24A of the SEBI Act.
An application is generally made within 60 days of receiving the show cause notice; later applications may be allowed subject to conditions, including a higher settlement amount. SEBI’s internal committees consider the application, and the settlement amount is worked out using the formula in the regulations. Certain serious violations are not eligible for settlement.
On 24 September 2026, the SEBI Board approved changes to the settlement framework — including a settlement notice before a show cause notice with a 60-day window, extension to some fund-diversion and misstatement cases, and a fast track for minor disclosure lapses. These apply only after SEBI notifies the amendments.
Basis: SEBI Act, 1992 (sections 15JB and 24A); SEBI (Settlement Proceedings) Regulations, 2018, as amended; SEBI Board meeting decisions of 24 September 2026 (pending notification). Last updated: 27 September 2026.
Settlement is without admitting or denying findings.
Generally apply within 60 days of receiving the show cause notice.
Allowed in some cases with a higher settlement amount.
Certain serious violations are not eligible.
Criminal offences may be compounded by a court under section 24A.
Board-approved changes of 24 September 2026 are pending notification.
Settlement outcomes depend heavily on timing and records.
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Settlement connects with these services.
SEBI PIT compliance.
LODR compliance.
Litigation support through advocates.
Review of compliance gaps.
Assess the notice and eligibility.
Organise records and chronology.
Draft the application with legal counsel.
File within the time limit.
Support meetings with SEBI through your advocate.
Pay and comply with the settlement order.
Close the matter fully.
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Share your query and our team will reply during business hours.
A process under the Settlement Proceedings Regulations to settle proceedings by paying an amount and/or agreeing to terms, without admitting or denying findings.
Generally within 60 days of receiving the show cause notice; later filings may be allowed with conditions.
No. Settlement covers administrative and civil proceedings; criminal offences may be compounded by a court under section 24A of the SEBI Act.
No. Certain serious violations are excluded.
The SEBI Board approved changes to the settlement framework on 24 September 2026, which apply after notification.
ACS – Director, Expertvuw Management Pvt Ltd
SEBI applications and filings are prepared by Expertvuw’s team. Certificates, audits and due diligence that SEBI regulations reserve for practising professionals or registered intermediaries are provided by independent registered professionals, and representation before SEBI or SAT is made by advocates or authorised professionals.