SEBI receives record 703 settlement applications in FY 2024-25

Mumbai: The Securities and Exchange Board of India (SEBI) received a record number of settlement applications in 2024-25, reflecting a growing preference among entities to resolve disputes without prolonged litigation.

According to SEBI’s annual report, the regulator received 703 settlement applications during the year, up from 434 in 2023-24. Of these, 284 were resolved through settlement orders, while 272 were rejected, withdrawn or returned.

From the cases that were settled, SEBI collected ₹798.87 crore as settlement charges and an additional ₹64.84 crore as disgorgement charges.

The settlement mechanism allows companies and individuals accused of violating securities laws to close cases by paying a fee and meeting specified conditions rather than contesting them in court. The violations covered a wide range of issues, including insider trading, fraudulent trading, Alternative Investment Funds (AIFs), mutual funds and Foreign Portfolio Investors (FPIs).

Alongside settlements, SEBI also handled a large number of appeals in 2024-25. A total of 533 fresh appeals were filed before the Securities Appellate Tribunal (SAT), down from 821 the previous year. Of these, 422 were disposed of, with most dismissed. SEBI data show that 73% of appeals were rejected, 5% were allowed, 10% upheld with modifications, 5% remanded, and 7% withdrawn.

About 62% of these appeals related to violations of the Prohibition of Fraudulent and Unfair Trade Practices Regulations, 2003.

Meanwhile, SEBI’s “difficult-to-recover” (DTR) dues rose to ₹77,800 crore in 2024-25, up from ₹76,293 crore at the end of March 2024. These dues remain pending despite extensive recovery efforts. The regulator clarified that the DTR classification is administrative in nature and does not prevent recovery officers from pursuing them if circumstances change.

IANS Input