Settlement remedial and regulatory terms may include enhanced compliance controls, independent review, training, audit and reporting requirements, business restrictions, management exit, clawback, refunds, securities cancellation or lock-in, and market-access restrictions. Specified proceedings may require stock-exchange and financial-statement disclosures where alleged violations affect audited accounts. Alleged diversion or siphoning of funds requires restoration to the company with interest, while related trading gains or losses averted may inform settlement terms. Relevant disclosures may be made without admission or denial of findings.

Regulation 16 provides a mitigating-factor framework for settlement terms, allowing applicable factors a base value of 0.20 each, subject to a maximum of five factors. Mitigation includes impaired capacity for investor restitution, minimal participation, exceptional cooperation, voluntary acceptance of responsibility, corrective measures, limited reporting delays without undue gain or loss, compensation and disgorgement, specified disclosure circumstances, financial distress, changes in management or control, and non-benefiting independent directors.

Settlement amount calculation applies aggravating factors at a base value of 0.20 for each applicable factor, subject to a maximum of five factors. Factors include obstruction of examinations or proceedings, misleading or withheld information, prolonged misconduct, significant client loss, disregard of prior guidance, sophisticated planning, market infrastructure or liquidity jeopardy, abuse of trust or special skill, key-operator status, financial benefit, repetitive default, and reckless compliance failures. Search and seizure and other appropriate case-specific circumstances may also be considered.

Regulation 14 prescribes gravity factors for settlement applications. Applications made without admitting a securities-law violation receive a 0.25 factor for reputation risk. Additional factors apply according to the violation: failure to make an open offer carries 0.25; specified offer-document and insider-trading violations carry 0.50 each; and fraudulent and unfair trade practice violations carry 1.50. Applicable values are added to the reputation-risk factor.

Regulatory action factor (R) equals the aggregate of values assigned to administrative warnings and orders issued against an applicant. It assigns zero where no prior order exists, 0.10 for each administrative warning, 0.20 for each settlement order, and 0.30 for each adverse order. Orders stayed by a tribunal or court remain included in calculating R.

The stage-of-proceeding factor (S) determines settlement valuation according to the status of an enforcement proceeding when the settlement application is filed. Different values apply from voluntary or suo motu settlement through proceedings before a show cause notice, after a show cause notice, before designated or Board-level forums, the Tribunal, and the Supreme Court. For multiple proceedings arising from the same cause of action, the most advanced stage governs the applicable factor.

Settlement base amount is calculated by applying applicant-specific multipliers to the minimum applicable penalty and cannot be below an imposed penalty. Amounts are calculated and aggregated for each count of default, while a single default attracting multiple violations takes the higher applicable amount. The base amount is doubled for a lead conspirator, mastermind or key operator, and an independent director is treated as an executive director where implicated in benefiting from or actively participating in fraud. Specified conduct may be treated as one count, subject to adjustment of default counts based on case facts.

Settlement amount is calculated by multiplying the base amount by the combined value of the stage of proceeding, regulatory action, gravity, aggravating and mitigating factors. Where the net factor is below one, it is treated as one. Settlement amount is calculated separately for each applicant, may include legal costs, and may be determined by the Panel of Whole Time Member where the prescribed factors cannot determine it.

Settlement terms may include a settlement amount, disgorgement of wrongful gains, loss averted or investor loss, and remedial and regulatory terms where applicable. Disclosures form part of every settlement term, and joint and several applicants may be liable jointly or severally for disgorgement with interest. Settlement amounts are credited to the Consolidated Fund of India, while disgorged amounts with interest are credited to the Investor Protection and Education Fund.

Settlement applications filed after a show cause notice permit the specified proceeding to continue while the final order remains in abeyance until disposal or withdrawal. Applications filed before a show cause notice keep its issuance in abeyance. The Board retains power to issue interim civil and administrative directions for investor protection and market integrity. Applications by some entities do not affect enforcement proceedings against non-applicants, and adverse observations against an applicant remain subject to its settlement outcome.

Settlement applications may be rejected for non-response, delayed submissions, repeated non-appearance, breach of undertakings or waivers, non-payment, or non-compliance with settlement conditions. Withdrawal is allowed before communication of the decision on acceptance or rejection. Refiling after rejection is limited to a subsequent stage where the earlier defect no longer applies, while withdrawn applications may be refiled at the same or a later stage. Refiling requires an additional settlement amount, and undertakings and waivers remain valid after rejection or withdrawal.

Settlement proceedings are unavailable where an earlier application concerning the same alleged default has been rejected, while examination, investigation, inspection or audit remains pending, or where the applicant is classified as a wilful defaulter, fraudulent borrower or fugitive economic offender. Settlement may also be declined for defaults having market-wide impact, causing widespread investor losses, or affecting market integrity. The Panel of Whole Time Member retains discretion to accept or reject applications in investors' interests and for securities market development and regulation.

Regulation 5 requires a settlement notice before issuance of a show cause notice, identifying probable charges and contemplated enforcement action and allowing a settlement application within sixty days. This mechanism does not apply where interim directions, prosecution, or matters covered by regulation 27 are involved. The Board may modify the probable charges or enforcement action, without creating a right to settlement or a basis to avoid enforcement.

Settlement applications for specified proceedings pending before the Board must be made within ninety days of service of the show cause notice or supplementary show cause notice, whichever is later. The limitation does not apply where proceedings are pending before the Tribunal or Supreme Court. Transitional applications for proceedings pending on commencement must be filed within ninety days where a prior application was not filed, rejected, returned, or withdrawn, and attract an enhanced settlement amount.

Settlement applications for specified proceedings may be made at any stage through the prescribed form, undertaking and waiver, settlement amount computation, and applicable non-refundable fee. Facts established or admitted in related proceedings concerning the same cause of action are deemed admitted for settlement. A single application must cover all specified proceedings arising from that cause of action. Incomplete applications may be returned and must be revised within fifteen days, failing which they are deemed withdrawn. Non-natural persons must apply through an authorised person responsible for their business conduct.

Regulation 2 supplies the definitional framework for settlement of administrative and civil proceedings arising from contraventions of securities laws. An alleged default covers any act or omission contravening securities laws that attracts a specified proceeding. Specified proceeding covers proceedings that may be commenced or are pending before the Board, and pending appeals before the Tribunal or Supreme Court, for violations of securities laws under the enumerated enforcement provisions.

Settlement of administrative and civil proceedings is regulated through the Securities and Exchange Board of India (Settlement of Administrative and Civil Proceedings) Regulations, 2026. The framework prescribes procedure and terms for settlement, including connected and incidental matters. It takes effect on the day immediately following the expiry of thirty days from notification in the Official Gazette.

Section 6A of the Central Sales Tax Act places the burden on a dealer to establish that inter-State movement occurred otherwise than by sale. Before mandatory Form F declarations took effect on 11 May 2002, that burden could be discharged through Form F or other available evidence. Verification under Section 6A(2) is limited to declaration particulars; unsupported presumptions, common parties, or an alleged common modus cannot establish disguised inter-State sales. Inspection material confined to an earlier period cannot support disallowance for subsequent transfers where no further records were sought and depot receipts were treated as stock transfers and taxed locally.

Three Grievance Appellate Committees are established under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. Each Committee has an ex officio chairperson drawn from designated government offices and two appointed whole-time members. Ashutosh Shukla, Sunil Soni, Commodore Sunil Kumar Gupta (Retired), Kavindra Sharma, Sanjay Goel, and Krishnagiri Ragothamarao Murali Mohan are appointed as whole-time members. Their tenure is three years from assumption of office or until further orders, whichever is earlier.

SAM amendment processing depends on whether Sea Entry Inwards has been granted and requires a pre-existing CSN. Before SEI, CSN amendments and direct SAM amendments generally take effect without officer approval, although a CSN amendment after SAM filing must be followed by a corresponding SAA. After SEI, CSN-level changes require a CSN amendment and linked SAA, while direct SAM-level changes require SAA; both take effect only upon jurisdictional Customs officer approval. CSN and SAM data must match to prevent validation errors.