# SEBI proposes overhaul to cut settlement costs by half

2026-08-14T17:49:32+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

SEBI has proposed a sweeping overhaul of its settlement framework, aiming to halve the gap between settlement amounts and actual penalties. The regulator found that rejected or withdrawn settlement applications demanded on average eight times the eventual penalty; the new formula targets a four-times ratio. A fast-track route for cases up to ₹10 lakh will skip the High Powered Advisory Committee and go directly to whole-time members. Applicants will get 60 days to settle before a show-cause notice and 90 days after one, up from 60 days. The regulator also proposes reducing the refiling penalty from 50% to 20% and allowing rejected applicants to reapply if circumstances change. Public comments are invited until 4 September.

## Coverage

- thehindubusinessline.com <https://www.thehindubusinessline.com/markets/sebi-overhaul-aims-to-cut-settlement-costs-by-50/article71346563.ece>
- livemint.com <https://www.livemint.com/market/sebi-proposes-overhaul-of-settlement-rules-to-cut-amounts-speed-enforcement-11786716403062.html>

Tags: capital markets, High Powered Advisory Committee, SEBI
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