SEBI classifies dues worth ₹76,293cr as 'difficult to recover'
The Securities and Exchange Board of India (SEBI) has classified dues worth ₹76,293 crore as "difficult to recover" (DTR) at the end of March 2024. This marks a 4% increase from the previous year. A significant portion of these dues is tied up in cases currently under review by court-appointed committees. DTR dues are those that remain unpaid despite all recovery efforts being exhausted.
DTR classification does not hinder recovery efforts
SEBI clarified in its 2023-24 annual report that classifying dues as DTR is an administrative procedure. It does not prevent recovery officers from attempting to collect the segregated amount, if there are changes in any of the DTR parameters. As of March 31, 2024, SEBI had identified 807 cases with a total outstanding of ₹76,293 crore as DTR, up from 692 cases amounting to ₹73,287 crore the previous year.
Pending cases and untraceable certificates contribute to DTR
Among the 807 DTR cases, 36 are pending in State PID courts, National Company Law Tribunal (NCLT), and National Company Law Appellate Tribunal (NCLAT) that involve ₹12,199 crore. An extra 60 cases are before court-appointed committees with ₹59,970 crore at stake. These two categories account for 95% of the total unrecovered amount. Furthermore, out of 140 DTR certificates categorized as untraceable, 131 belong to individuals and nine to companies amounting to ₹13.3 crore and ₹15.7 crore respectively.
Total recovery amount exceeds ₹1 lakh crore
SEBI's total recovery amount stands at ₹1.03 lakh crore from various entities, including those who have not paid fines or fees, and those who have not complied with directives to refund investors' money. "Of the total amount of ₹1,02,830.75 crore to be recovered, ₹63,206 crore pertains to CIS/DPI matters of PACL Ltd and Sahara India Commercial Corporation Ltd," SEBI stated in its report.
SEBI investigates new cases of securities law violations
SEBI has initiated 342 new investigations into violations of securities law during 2023-24, a significant increase from the 144 cases in the previous fiscal year. These cases involve alleged market manipulation, insider trading, and price rigging. "During 2023-24, 342 cases pertaining to various violations of securities laws were taken up for investigation and 197 cases were completed," SEBI reported.
