The Securities and Exchange Board of India (Sebi) has classified Rs 76,293 crore in dues as "difficult to recover" (DTR) by the end of March 2024, marking a 4% increase from the previous year. This category includes amounts that have proven challenging to recover despite all available methods.
A significant portion of these DTR dues involves cases currently before court-appointed committees. Sebi's annual report for 2023-24 clarifies that the segregation of these dues is an administrative procedure and does not prevent recovery efforts if the status of these dues changes.
As of March 31, 2024, Sebi identified 807 cases as DTR, up from 692 cases totalling Rs 73,287 crore the previous year. Of these, 36 cases are pending in State PID courts, the National Company Law Tribunal (NCLT), and the National Company Law Appellate Tribunal (NCLAT), involving Rs 12,199 crore. Additionally, 60 cases before court-appointed committees account for Rs 59,970 crore. These two categories together represent 95% of the total amount yet to be recovered.
Among the 140 DTR certificates classified as untraceable, 131 pertain to individuals and nine to companies, amounting to Rs 13.3 crore and Rs 15.7 crore, respectively. Sebi has been providing data on these cases since 2021-22 to increase transparency in its enforcement actions.
As of March 31, 2024, Sebi has issued a total of 6,781 recovery certificates, with 3,871 still pending. The regulator has outstanding dues totalling Rs 1.03 lakh crore from entities that failed to pay fines, fees, or comply with directives to refund investors' money.
Notably, Rs 63,206 crore, or 61.5% of the total amount due, relates to Collective Investment Scheme (CIS) and Deemed Public Issue (DPI) matters involving PACL Ltd and Sahara India Commercial Corporation Ltd, respectively.
During the financial year 2023-24, Sebi initiated 342 new investigations into securities law violations, a significant increase from the 144 cases in the previous year. These investigations covered various issues including market manipulation, price rigging, and insider trading. Of these, 197 cases were concluded, with 174 related to insider trading, 160 to market manipulation and price rigging, and seven to other securities law violations. Sebi's investigations are driven by referrals from its integrated surveillance department, operational units, and external government agencies.
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