Surge in Settlement Pleas Marks a New Era for Sebi

In a significant development, the Securities and Exchange Board of India (Sebi) has reported a dramatic increase in settlement applications, with 703 cases filed in the fiscal year 2024-25. This marks a substantial rise from the 434 applications recorded in the previous year.

Breaking Down the Numbers

Out of these, 284 pleas were successfully settled, while 272 were either returned, rejected, or withdrawn. The settlement mechanism, a cornerstone of Sebi's regulatory framework, allows entities to resolve alleged violations by paying a fee and adhering to certain conditions, thereby avoiding lengthy litigation.

Financial Implications and Violations Covered

The regulator collected a whopping Rs 798.87 crore in settlement charges, alongside Rs 64.84 crore in disgorgement. These settlements encompassed a wide array of violations, including insider trading, fraudulent trading practices, and breaches related to Alternative Investment Funds (AIFs), mutual funds, and Foreign Portfolio Investors (FPIs).

Appeals and Difficult-to-Recover Dues

Sebi also handled 533 new appeals before the Securities Appellate Tribunal (SAT), with a significant portion related to the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003. Meanwhile, 'difficult-to-recover' dues climbed to Rs 77,800 crore, underscoring the challenges in recovering these amounts despite concerted efforts.