SEBI Settlement Scheme guidelines are available to download in PDF format at sebi.gov.in. SEBI has been helping settle enforcement proceedings approved, initiated and pending in respect of the illiquid stock options matters on the Bombay Stock Exchange (BSE).
Scheme has been closed or it was a one time scheme which has been closed by the government.
SEBI Settlement Scheme
Following the order of the Honourable Securities Appellate Tribunal (SAT) dated May 13, 2022, in the matter of illiquid stock options, SEBI framed a Settlement Scheme (Scheme 2022) for entities against whom proceedings were initiated and were pending before any forum or authority, namely Courts, SAT, Adjudicating Officer and Recovery Officer, provided an appeal was filed and was pending before the SAT or Court. The entities could avail the Scheme 2022 as per its terms and conditions.
SEBI later introduced a third settlement scheme for the same illiquid stock options matter in 2024. The ISO Settlement Scheme 2024 was open from March 11, 2024 to May 10, 2024 and covered entities that executed reversal trades in the illiquid stock options segment of BSE between April 1, 2014 and September 30, 2015.
In 2026, SEBI has proposed the SEBI (Settlement of Proceedings) Regulations, 2026 to replace the existing SEBI (Settlement Proceedings) Regulations, 2018. The draft has been released for public comments, which are due by September 4, 2026. The proposed rules aim to make the settlement process simpler and to bring down settlement amounts.
| Detail | Information |
|---|---|
| Scheme Name | SEBI Settlement Scheme |
| Launched By | Securities and Exchange Board of India (SEBI) |
| Purpose | Settlement of illiquid stock options enforcement proceedings |
| Application Mode | Online through SEBI portal |
| Official Website | sebi.gov.in |
Terms and Conditions of SEBI Settlement Scheme
SEBI Settlement Scheme 2022 was available on the websites of SEBI and BSE from August 22, 2022. The Scheme commenced on August 22, 2022 and ended on November 21, 2022, and was later extended till January 21, 2023 considering the interest of a large number of entities. Around 10,980 entities settled their cases under the scheme.
Under the ISO Settlement Scheme 2024, an entity had to submit a settlement application along with an application registration fee of ₹25,000 plus GST at 18% for body corporates and ₹15,000 plus GST at 18% for individuals. The application form and payment of the application fee and settlement amount were done online, with no physical documents required.
How to File a Settlement Application
STEP 1 - Go to the official SEBI settlement portal at siportal.sebi.gov.in and open the settlement application page.
STEP 2 - Select the Settlement Scheme option from the drop down menu, enter the PAN and captcha, and click on Go.
STEP 3 - Upload the required scanned documents, including the notarised undertakings and waivers on non-judicial stamp paper, a self-attested copy of the PAN card, and the application for settlement.
STEP 4 - Pay the non-refundable application registration fee and the settlement amount online through the payment gateway.
Latest 2026 Update
SEBI has released a consultation paper on the review of the SEBI (Settlement Proceedings) Regulations, 2018 and has proposed the new SEBI (Settlement of Proceedings) Regulations, 2026. The draft proposes a simpler settlement amount formula, a higher limit for fast track settlement, and changes to filing fees. Public comments on the draft are invited latest by September 4, 2026.
For the latest details, applicants can check the SEBI settlement schemes page at sebi.gov.in settlement schemes and the proposed regulations consultation paper at SEBI Settlement Regulations 2026 consultation paper.
FAQ's
Is the SEBI Settlement Scheme still running?
No. The earlier illiquid stock options settlement schemes, including Scheme 2022 and the ISO Settlement Scheme 2024, have been closed. SEBI has proposed new Settlement of Proceedings Regulations 2026, which are open for public comments till September 4, 2026.
Where can I download the SEBI Settlement Scheme guidelines PDF?
The guidelines and related documents are available on the official SEBI website at sebi.gov.in under the settlement schemes section.
What was the application fee under the scheme?
Under the ISO Settlement Scheme 2024, the application registration fee was ₹25,000 plus GST at 18% for body corporates and ₹15,000 plus GST at 18% for individuals.