Sebi's recovery rate remains below 2% of notices sent over a decade

The remaining recovery of 98.3 per cent has not been realised in practice. These notices cover collective investment schemes (CIS), deemed public issues (DPI), and other matters

The recovery rate of proceeds collected by the Securities and Exchange Board of India (Sebi) as a share of the amount for which it sent out recovery notices has been less than two per cent in the past decade. 

Sebi has sent recovery notices to the tune of Rs 1.06 trillion since 2013-14 (FY14), of which it has been able to recover only Rs 1,768 crore, according to Business Standard analysis of Sebi’s annual reports.

The remaining 98.3 per cent has not been realised in practice. These notices cover collective investment schemes (CIS), deemed public issues (DPI), and other issues. 

In FY24, Sebi recovered Rs 133 crore.

The number of recovery notices or notices of the demand drawn by Sebi has gone up. As of March 31, 2024, a total of 6,781 recovery certificates have been issued. 

In FY24, the regulator sent 1,337 recovery notices. With more notices, the total pending notices have reached 3,871, a record high. For every notice sent, three remained pending.
 

Of the total recoverable amount of Rs 1.02 trillion, Rs 63,206 crore constituting 61.5 per cent is related to CIS/DPI matters involving PACL Ltd and Sahara India Commercial Corporation Ltd.