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SEBI · Settlement Proceedings

SEBI Settlement Proceedings and Compounding – Resolving Show Cause Notices

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.

Overview

How SEBI Settlement Works

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.

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What This Service Covers

What We Help With

1

Reviewing the show cause notice and timeline

2

Organising records and chronology

3

Preparing the settlement application with legal counsel

4

Supporting meetings with SEBI's committees through your advocate

5

Post-order compliance and closure

Key Facts

Without admission

Settlement is without admitting or denying findings.

Timing

Generally apply within 60 days of receiving the show cause notice.

Late applications

Allowed in some cases with a higher settlement amount.

Exclusions

Certain serious violations are not eligible.

Court compounding

Criminal offences may be compounded by a court under section 24A.

2026 changes

Board-approved changes of 24 September 2026 are pending notification.

Common Issues

Common Issues

Settlement outcomes depend heavily on timing and records.

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Related Services

Related services

Settlement connects with these services.

Insider Trading Compliance

SEBI PIT compliance.

Listing Compliance

LODR compliance.

Corporate Litigation

Litigation support through advocates.

Compliance Health Check

Review of compliance gaps.

Documents Required

Documents we need from you

Proceedings Records

Supporting Records

Our Process

How We Work

1

Review

Assess the notice and eligibility.

2

Records

Organise records and chronology.

3

Prepare

Draft the application with legal counsel.

4

File

File within the time limit.

5

Committee

Support meetings with SEBI through your advocate.

6

Close

Pay and comply with the settlement order.

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After Settlement

After Settlement

Close the matter fully.

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Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    What is SEBI settlement?

    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.

    About Expertvuw

    Who Handles Your Matter

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    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.

    Expertvuw Management Pvt Ltd