SEBI Struggles to Recover Dues, Identifies 807 Difficult-to-Recover Cases

The Securities and Exchange Board of India (SEBI) has revealed that a significant portion of its outstanding dues, amounting to ₹76,293 crore, is categorised as “difficult to recover.” This figure represents a 4% increase from the previous year.

A significant portion of these difficult-to-recover (DTR) dues is attributed to cases pending before court-appointed committees. Such cases, involving ₹59,970 crore, constitute a substantial portion of the total outstanding amount.

SEBI has identified 807 DTR cases, of which 36 are currently under litigation in various courts. Additionally, 140 cases are considered untraceable, involving individuals and companies with outstanding amounts totalling ₹13.3 crore and ₹15.7 crore, respectively.

The market regulator has been diligently working to recover these dues, generating a total of 6,781 recovery certificates. However, as of March 31, 2024, 3,871 certificates remained outstanding.

A significant portion of the unrecoverable dues, amounting to ₹63,206 crore, is related to CIS (Collective Investment Scheme) and DPI (Deemed Public Issue) matters involving PACL Ltd and Sahara India Commercial Corporation Ltd.

SEBI’s efforts to recover dues have also included initiating investigations into alleged securities law violations. In the fiscal year 2023-24, SEBI took up 342 new cases for investigation, focusing on areas such as market manipulation, price rigging, and insider trading.

Despite these efforts, SEBI faces challenges in recovering a substantial portion of its dues, highlighting the complexities involved in enforcing regulatory measures. The regulator’s focus on transparency and accountability is evident in its efforts to disclose information about DTR cases and ongoing investigations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.