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SEBI's dues worth Rs 73,287 Cr 'difficult to recover'

Aug 9, 2023

By: BlinkX Research Team

The Securities and Exchange Board of India (Sebi) has labeled 120 companies as untraceable within the category of 692 "difficult to recover" cases, amounting collectively to Rs 73,287 crore in dues as of March 2023. The count of untraceable companies has surged from 94 in March 2022. These entities are suspected to be those that vanished after raising funds from the public. Additionally, the 'defunct company' category expanded to 341 companies from 238 in the previous year. Sebi's Annual Report also unveiled 83 defaulters lacking attachable assets, up from 49 in the preceding year.

Sebi currently oversees 307 cases with pending amounts of Rs 88,127 crore, awaiting resolution across various legal avenues, with many of these cases awaiting adjudication before the Securities Appellate Tribunal (SAT). Despite administratively segregating difficult-to-recover (DTR) dues, recovery officers can still pursue collections if circumstances evolve. Sebi is empowered to recoup penalties imposed by adjudicating officers.

Overall, Sebi confronts dues amounting to Rs 1.02 lakh crore across entities due to diverse reasons such as non-payment of fines, fees, and non-compliance with refund directives. Of this total, Rs 63,206 crore is linked to collective investment schemes and deemed public issues, primarily attributed to PACL Ltd and Sahara India Commercial Corporation Ltd. Moreover, Sebi pointed to ongoing parallel proceedings in 77 cases involving Rs 70,482.62 crore or 69% of the total amount before courts and court-appointed committees.

During the fiscal year 2022-23, Sebi initiated investigations into 144 fresh cases concerning violations of securities laws, marking a substantial rise from the 59 cases undertaken in the previous year. These cases encompassed alleged transgressions such as market manipulation, insider trading, and price rigging. Sebi instigates investigations grounded in references from its integrated surveillance department, operational divisions, and external government agencies. In the same fiscal year, Sebi initiated enforcement actions in 67 cases and resolved 333 cases.

Content source: Media reports