In FY24, the Securities and Exchange Board of India (Sebi) recovered approximately ₹75 crore in penalties for unfair trading practices, despite a fall of over 30% in appeals against its decisions during the fiscal year that concluded on March 31st.
SEBI Collects ₹75 Cr In Penalty For Violations: Know More Here!
The market regulator’s annual report, which was made public on Friday, revealed that there were 821 appeals against its rulings submitted in FY24, fewer than the 1,192 appeals lodged the year before. According to the report, the Securities Appellate Tribunal (SAT) resolved 730 appeals in FY24 instead of 1,131 in 2022–2023.
“Out of the 730 disposals, 380 appeals (52%) were dismissed, 157 appeals (21.5%) were allowed and 57 appeals (7.8%) were remanded for fresh consideration,” the Sebi report said.
The Sebi annual report also stated that 994 orders had been issued to conclude adjudication proceedings against 1,460 organizations. 796 organizations were fined ₹74.88 crore for breaking the laws against unfair and deceptive business practices. Additionally, it concluded the adjudication of 55 entities for insider trading, resulting in ₹5.07 crore in penalties.
According to the report, Sebi issued 85 adjudication decisions against registered intermediaries in FY24. Of these, the bulk (33 out of 85) were against brokers, followed by investment advisers (16) and other intermediaries/institutions.
As per reports, 1,419 cases were submitted in FY24, and 1,166 cases were resolved by various court forums. Up to 4,190 cases were pending in various stages before different judicial fora as of March 31.
Pending cases
The report stated that as of March 31, there were 519 cases ongoing before the Supreme Court and 49 cases that had been resolved; of these, 38 cases (77.5%) were resolved in favour of Sebi and 11 cases (22.5%) were resolved against it.
The study also noted that, in comparison to the previous year’s 9,426 complaints, approximately 14,198 were resolved in 2023–2024. “As of March 31, 887 complaints were pending with the stock exchanges as against 590 pending as of March 31, 2023,” the report stated.
“342 cases about various violations of securities laws were taken up for investigation and 197 cases were completed. A total penalty amounting to ₹74.66 crore was imposed against various securities market violations during the year,” the report said.
