SEBI Launches Settlement Helpdesk Facility: How Applicants Can Use the New Portal

Kaustav Chowdhury
2 hours ago
4 min read

The Securities and Exchange Board of India (SEBI) has launched a Settlement Helpdesk Facility to assist applicants in filing settlement applications under the SEBI (Settlement Proceedings) Regulations, 2018. Announced through Press Release No. 38/2026 dated July 1, 2026, the facility provides a dedicated channel for prospective applicants to understand the settlement process, compute indicative settlement amounts, and track the status of pending applications.

The initiative is part of SEBI broader effort to make its enforcement framework more accessible and to encourage early resolution of proceedings through the settlement mechanism. A user manual for the facility has been published on the SEBI website to guide applicants through the process.

What the Settlement Helpdesk Does

The Settlement Helpdesk Facility offers three core functions. First, it assists applicants in filing settlement applications by guiding them through the procedural requirements and documentation needed for a valid application. Second, it helps applicants compute the indicative settlement amount payable under the Settlement Proceedings Regulations, taking into account the nature of the default, the stage of proceedings, and other relevant factors. Third, it allows applicants to track the status of their pending settlement applications.

The facility is designed to address a common barrier to settlement: lack of clarity about the process and the likely settlement amount. By making this information more accessible, SEBI aims to increase the number of cases resolved through settlement rather than through lengthy adjudication proceedings. The broader regulatory framework for capital markets in India has been moving towards more efficient dispute resolution mechanisms.

Understanding the Settlement Proceedings Framework

The SEBI (Settlement Proceedings) Regulations, 2018, which came into effect on January 1, 2019, replaced the earlier SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014. The regulations establish a multi-tier framework for settling proceedings initiated by SEBI for violations of securities laws.

Under the current framework, any person against whom proceedings have been initiated or are about to be initiated under securities laws may file a settlement application. The application is first examined by an Internal Committee, then reviewed by a High Powered Advisory Committee, and finally decided by a Panel of Whole Time Members of SEBI. If the application is accepted, SEBI issues a settlement order that typically involves payment of a settlement amount and compliance with non-monetary terms, without any admission or denial of guilt by the applicant.

How the Settlement Amount Is Calculated

The settlement amount under the regulations is determined based on multiple factors, including the nature and gravity of the violation, the ill-gotten gains or benefits derived by the noticee, the losses caused to investors, the noticee cooperation with SEBI during the investigation and proceedings, and settlement precedents in similar cases. The regulations also include a timing incentive: applicants who file for settlement at an earlier stage of proceedings typically pay a lower amount than those who file after an adverse order or during appeal.

SEBI had previously launched a Settlement Calculator (Beta) in May 2024 to help applicants estimate the indicative settlement amount. The new Settlement Helpdesk Facility builds on that tool by providing additional support for the filing and tracking process. The SEBI regulatory framework for market participants has been evolving to provide more structured and transparent enforcement mechanisms.

Exclusions From Settlement

Not all defaults can be settled under the regulations. A default shall not be settled if, in SEBI opinion, it has had a market-wide impact, caused losses to a large number of investors, or affected the integrity of the market. Additionally, SEBI may refuse to settle proceedings where the applicant is a wilful defaulter, a fugitive economic offender, or has defaulted in payment of any fees or penalties under securities laws.

The settlement framework distinguishes between the settlement amount and disgorgement. Disgorgement, which represents the wrongful gain made by the violator, remains conceptually distinct from the settlement sum. The onus lies on SEBI to demonstrate that the amount sought as disgorgement reasonably approximates the amount of unjust enrichment. Courts have held that disgorgement is not a penalty but an equitable remedy.

How to Use the Settlement Helpdesk

Applicants and prospective applicants can access the Settlement Helpdesk through the SEBI website. The user manual published by SEBI provides step-by-step instructions for using the facility, including how to submit queries, how to use the indicative amount computation feature, and how to check the status of applications. Queries submitted to the helpdesk are addressed by SEBI settlement team, which provides guidance on procedural aspects of the settlement process.

For market intermediaries, brokers, listed companies, and other regulated entities facing enforcement proceedings, the helpdesk represents a significant improvement in transparency. Previously, applicants had to navigate the settlement process with limited guidance on expected outcomes. The facility is expected to reduce the time taken for settlement applications and improve the quality of applications filed, thereby benefiting both applicants and SEBI.

Significance for Market Participants

The launch of the Settlement Helpdesk is significant for several reasons. It signals SEBI continued preference for settlement as a resolution mechanism over protracted adjudication. The facility lowers the information barrier for smaller market participants who may not have dedicated legal teams to navigate the settlement process. It also promotes consistency in settlement outcomes by providing transparent computation tools and guidance.

Key Takeaways

1. SEBI launched the Settlement Helpdesk Facility on July 1, 2026, via PR No. 38/2026, to assist applicants in filing settlement applications under the Settlement Proceedings Regulations, 2018.

2. The facility provides three core functions: assistance with application filing, indicative settlement amount computation, and status tracking for pending applications.

3. Settlement amounts are calculated based on the nature of the violation, ill-gotten gains, investor losses, the applicant cooperation, and the stage of proceedings at the time of application.

4. Defaults with market-wide impact, large investor losses, or those by wilful defaulters and fugitive economic offenders cannot be settled under the regulations.

5. A user manual is available on the SEBI website to guide applicants through the helpdesk and settlement process step by step.