The Securities and Exchange Board of India (SEBI) has identified significant dues that remain unrecovered despite sustained efforts.
Alongside this disclosure in its FY25 annual report, the market regulator has outlined key reforms to streamline regulations, boost investor awareness, and enhance operational efficiency for market participants.
SEBI reported around ₹77,800 crore as “difficult-to-recover” (DTR) dues for FY25, marking a nearly 2% increase from the previous year. These include over ₹61,200 crore tied to cases pending before court-appointed committees and ₹12,300 crore linked to parallel proceedings in State PID Courts, NCLT, NCLAT, and the Supreme Court. The regulator clarified that the DTR classification does not prevent recovery efforts if circumstances change.
SEBI chairman Tuhin Kanta Pandey emphasised the importance of simplifying rules, easing norms for foreign portfolio investors (FPIs), and strengthening investor awareness. He stated that excessive or overlapping regulations increase compliance costs and that a comprehensive review to rationalise existing frameworks is underway.
The regulator aims to create a streamlined environment for FPIs to encourage long-term capital inflows. Steps include simplified registration for FPIs investing solely in Indian government securities and the introduction of ‘SWAGAT-FI’—a proposed single-window clearance system for low-risk FPIs. These initiatives are designed to remove operational bottlenecks and improve stakeholder engagement.
Pandey reiterated that investor education remains a priority, with a focus on cyber-fraud awareness. SEBI has conducted a nationwide investor survey to shape its awareness strategies and is enhancing both cybersecurity and technological infrastructure.
This year’s agenda includes easing compliance requirements for stockbrokers, simplifying offer documents, reviewing asset management company restrictions, and reforming alternative investment fund rules. The margin trading funding (MTF) framework is also under review, with the MTF book standing at ₹92,000 crore as of August 8, according to NSE data.
A dedicated committee has been formed to review takeover regulations to align them with judicial rulings and international best practices. The aim is to simplify and strengthen the regulatory structure for corporate acquisitions.
Inspection activity has risen sharply, with 312 stockbroker inspections in FY25 compared to 146 in FY24. Inspections of investment advisers and research analysts surged to 207 and 149, respectively, from 21 and 15 in the previous year. Settlement application filings also jumped to 703 in FY25 from 434 in FY24.
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As of March 2025, 520 cases are pending before the Supreme Court, while 960 cases await resolution at the Securities Appellate Tribunal (SAT), reflecting the ongoing legal workload faced by the regulator.
SEBI’s FY25 annual report not only highlights the challenge of recovering ₹77,800 crore in dues but also underscores its proactive steps to strengthen market oversight, simplify compliance, and enhance investor protection.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Aug 13, 2025, 1:13 PM IST
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