SEBI Overhauls Settlement Framework, Introduces Appellate Stages for Disputes
- Reports
- 4
- Developments
- 5
- Repetition
- 75%
New informationRepeats or wire copies
What happened
The Securities and Exchange Board of India is proposing a revamp of its settlement framework, which includes allowing applicants to seek settlement at the appellate stage before the Securities Appellate Tribunal and the Supreme Court. The regulator also proposed a simpler formula for calculating settlement amounts and lower additional charges for refiling applications. Separately, SEBI launched its fourth settlement scheme for illiquid stock options cases related to non-genuine trades executed on BSE between April 2014 and September 2015.
Why it matters
The regulatory changes aim to reduce litigation and provide an alternative mode of resolving pending regulatory proceedings. This follows a recent settlement where the Supreme Court disposed of SEBI’s appeals against the National Stock Exchange after the parties reached a settlement of ₹1,491.21 crore.
Regulatory bodies and stock exchanges in India are involved in legal disputes and appeals before the Supreme Court.
Who's involved
- Securities and Exchange Board of IndiaMarket regulator proposing the settlement framework overhaul and launching new settlement schemes
- supreme courtHighest court that functions as the ultimate appellate body for regulatory disputes
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- CTS may face changes to regulatory dispute resolution costsCTS may face changes to regulatory dispute resolution costsPossible
- New SEBI framework could simplify regulatory disputes for Jio PlatformsJio Platforms may benefit from new regulatory dispute resolution optionsPossible
- SEBI's new settlement framework may require RBI coordinationThe Reserve Bank of India may need to coordinate with SEBI on new settlement rulesPossible
- Zerodha may adapt to SEBI's new settlement and appeal rulesZerodha may face changes in compliance costs due to SEBI's settlement framework overhaulPossible
How it developed
Newest first. Tap a step to see who reported it.- Supreme Court examined SAT's powers and addressed arguments from a Clearing Corporation on November 1, 2026.Sub-event
- SEBI has gained the power to call records before an SAT appeal.Sub-event
- SAT directed a deposit in favor of the Securities and Exchange Board of India.Sub-event
- SEBI proposals have been released detailing how the final appeal venue will be affected.Sub-event
Regulatory bodies introduce appellate stages for settlement and ultimate disputes.1 source
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The entities involved
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Securities and Exchange Board of India
registration authority
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SAT
Czech company
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supreme court
highest court in a jurisdiction
Related events
- SEBI regulates derivatives contracts settlement, noting that CAS functions as a trading mechanism in India.
- Mahua Moitra filed litigation seeking transparency and directions from SEBI.
- HDFC Securities is monitoring market depth in the CAS, while SEBI works to improve overall participation in the system.
- The Supreme Court has sought replies from the Centre regarding a plea filed by traders.
- SEBI introduced margin requirements and STT while regulating financial markets in India amidst intensifying competition.