Sebi clarifies on 120 untraceable entities in 'difficult to recover' list

Sebi said 120 entities listed as untraceable in the 'difficult to recover' category comprises only five companies while the rest are individuals and the majority of the cases are over a decade old

Capital markets regulator Sebi on Thursday said 120 entities listed as untraceable in the 'difficult to recover' category comprises only five companies while the rest are individuals and the majority of the cases are over a decade old.

Further, Sebi said the amount involved with regard to these 120 entities is Rs 17.82 crore, which is 0.02 per cent of the total outstanding amount to be recovered.

Moreover, out of 120 entities, 116 cases are old (97 per cent) and the violation period dates back to over a decade ago, the Securities and Exchange Board of India (Sebi) said in a statement.

Overall, the markets watchdog has pending dues worth Rs 1.02 lakh crore that needs to be recovered from entities as of March 31, 2023, according to its latest annual report.

As on March 31, 2023, there were 692 cases which are identified as 'Difficult To Recover' (DTR) with a total outstanding amount of Rs 73,287 crore.

Out of 692 cases, 86 are pending on account of parallel proceedings before State PID courts, National Company Law Tribunal (NCLT), NCLAT (National Company Law Tribunal) and also before court-appointed committees, with recovery dues amounting to Rs 12,162.3 crore and Rs 58,756.5 crore, respectively.

Together, the two categories constitute 96.7 per cent of the total amount outstanding to be recovered. All these cases are old pertaining to violations that were committed over a decade ago, Sebi said.

The regulator said that it has been disseminating data on the composition of DTR cases from 2021-22 onwards through its annual report to enhance the transparency of its enforcement proceedings and in compliance with Sebi (Annual Report) Rules.

Going by the annual report, DTR dues are those that could not be recovered even after exhausting all modes of recovery.

It had clarified that segregation of such DTR dues is purely an administrative act and this will not preclude recovery officers from recovering the amount so segregated as DTR as and when there is a change in any of its parameters.