Sebi flags ₹77,800 cr as difficult-to-recover dues in FY25 annual report

Sebi identifies ₹77,800 crore as difficult-to-recover dues, outlines reforms for FPIs, intermediaries, takeover rules, and investor awareness in its FY25 annual report

The Securities and Exchange Board of India (Sebi) has identified around ₹77,800 crore as “difficult-to-recover” or DTR dues in its annual report for 2024-25 (FY26), marking a nearly 2 per cent increase from the previous year.

 

These dues remain unrecovered despite exhaustive recovery efforts.

 

Of the total, over ₹61,200 crore pertains to cases pending before court-appointed committees. And, ₹12,300 crore relates to parallel proceedings pending in State PID Courts, the National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT), and the Supreme Court.

 

Sebi clarified that categorising dues as DTR does not prevent officials from pursuing recovery if circumstances change.

 

In the report, Sebi chairman Tuhin Kanta Pandey underscored the regulator’s commitment to simplifying regulations, easing norms for foreign portfolio investors (FPIs), and enhancing investor awareness.

 

Pandey added that Sebi will undertake a comprehensive exercise to rationalise existing regulations, mindful that excessive or overlapping rules increase compliance costs.

 

He added that Sebi aims to streamline the regulatory framework for FPIs to facilitate smoother operations and promote long-term foreign capital inflows.

 

Recent initiatives include easier registration for FPIs investing solely in Indian government securities and a proposed single-window clearance system—‘SWAGAT-FI’—for low-risk FPIs.

 

“Efforts will focus on streamlining processes, removing regulatory bottlenecks, and strengthening engagement with FPIs and stakeholders. Investor education, including cyber-fraud awareness, remains a top priority,” Pandey said.

 

Other key focus areas this year include easing compliance requirements for stockbrokers, simplifying offer documents, reviewing restrictions on asset management companies, and implementing reforms for alternative investment funds.

 

Sebi is also reviewing the margin trading funding (MTF) framework, including eligible securities. As of August 8, the MTF book stood at ₹92,000 crore, according to NSE data.

 

The regulator has constituted a committee to review takeover regulations, tasked with simplifying and strengthening the framework in line with judicial rulings and global best practices.

 

Sebi also conducted a nationwide investor survey to shape its investor awareness strategy and has bolstered cybersecurity and technological infrastructure.

 

Inspection activities surged significantly last year, with 312 stockbroker inspections in FY25 from 146 in FY24.

 

Inspections of investment advisors and research analysts also rose sharply to 207 and 149 respectively, compared to 21 and 15 in the previous year.

 

Settlement applications filings jumped to 703 in FY25 from 434 in FY24.

 

Regarding pending cases, as of March 2025, 520 matters await resolution at the Supreme Court, and 960 are pending at the Securities Appellate Tribunal (SAT).