The number of entities in Sebi adjudication under Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market (PFUTP) sharply fell to 239 in FY25, from 796 in the previous year, according to its annual report published Tuesday. Penalties levied against institutions rose 11 times – from Rs 74.6 crore in FY24 to Rs 813.8 crore in FY25.
Marked improvement in market integrity
Entities listed under non-compliance fell 92% – from 25 to 2 between FY24 and FY25 – and those under insider trading fell 73%, from 55 to 15. This indicates a significant improvement in market integrity.
The amount of difficult to recover (DTR) dues went up from Rs 76,292 crore in FY24 to Rs 77,800 crore in FY25. DTR dues are those which could not be recovered even after exhausting all the modes. Total fees received by Sebi went up 26%, from Rs 1,851 crore to Rs 2,334 crore. This is almost double the amount of Rs 1,213 crore received in FY23.
Breakdown of adjudication and recovery
“During 2024-25, Sebi completed adjudication proceedings against 1,293 entities through 374 orders,” the report said. “Out of the total amount of Rs 1,04,583.3 crore to be recovered, Rs 63,206 crore, 61.4% of the total amount due, pertains to collective investment schemes (CIS), deemed public issue (DPI) matters of PACL (Pearl Agrotech Corporation) and Sahara India Commercial Corporation,” the report said.
Penalties were not levied against 107 entities and settlement orders were passed in case of 660 entities. During FY25, 116 adjudication orders were passed against registered intermediaries. Of these, a majority (58) pertained to brokers, followed by investment advisors at 12. The remaining orders were passed against various entities.
An amount of Rs 75,733.13 crore, 72.41% of total due of Rs 1,04,583.3 crore, is subject to parallel proceedings before various courts and court appointed committees. “In these cases, recovery proceedings are subject to directions or approvals of respective court or committee. Matters where Insolvency and Bankruptcy Code (IBC) is invoked, recovery proceedings are affected by the moratorium under the said code.”