SEBI's FY25 Income Jumps 31% to ₹2,713 Crore Amid CAG's Internal Control Concerns

The Securities and Exchange Board of India (SEBI) reported a significant increase in its income for the financial year 2024-25 (FY25), reaching ₹2,713 crore, marking a 31% rise from the previous year. However, the Comptroller and Auditor General of India (CAG) has flagged several internal control issues in SEBI's operations. 

SEBI's Financial Performance in FY25 

In FY25, SEBI's total income reached ₹2,713 crore, up from ₹2,075 crore in FY24. This growth was driven by a substantial increase in settlement and compounding charges, which rose from ₹104 crore to ₹815 crore. SEBI's capital fund also saw a notable increase, expanding by nearly 30% to ₹7,235 crore. 

SEBI's investment portfolio also grew during the year, with investments including ₹2,857 crore in government securities, ₹2,215 crore in deposits with scheduled banks, and ₹30 crore in the National Centre for Financial Education. 

CAG's Audit Findings 

The CAG audit report highlighted several internal control issues within SEBI. It noted discrepancies in the balances between the head office and branches, indicating incomplete transaction accounting. Additionally, there were unreconciled differences in lease deposits and discrepancies in asset records. 

Read More: SEBI Concludes Proceedings Against 29 Venture Capital Funds Over Norms Violation! 

Asset and Lease Discrepancies 

The audit report pointed out that certain assets were marked as 'disposed of' but were not removed from the books. Furthermore, the lease deposit liabilities reflected on the financial statements did not match those calculated based on executed lease agreements. 

Conclusion 

SEBI's financial performance in FY25 was marked by a significant increase in income and an expanded investment portfolio. However, the CAG's audit report has raised concerns about internal control issues, particularly in transaction accounting and asset management. 

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