The Securities and Exchange Board of India (Sebi) collected approximately ₹75 crore in penalties for unfair trading practices in the fiscal year 2024. During the same period, there was a more than 30% drop in the number of appeals against its orders compared to the previous year.
According to Sebi’s annual report, which was released on Friday, 821 appeals were filed in FY24, down from 1,192 the year before. The Securities Appellate Tribunal (SAT) resolved 730 appeals this year, compared to 1,131 in the previous financial year. Of these 730 cases, 380 (52%) were dismissed, 157 (21.5%) were approved, and 57 (7.8%) were sent back for further review.
In FY24, Sebi concluded adjudication proceedings against 1,460 entities with 994 orders. It levied penalties amounting to ₹74.88 crore on 796 entities for breaking rules related to fraudulent and unfair trading practices. Additionally, penalties of ₹5.07 crore were imposed on 55 entities for insider trading.
The report also noted that Sebi issued 85 adjudication orders against registered intermediaries. The majority of these were against brokers (33), followed by investment advisers (16), with the remaining orders against various other intermediaries and institutions.
Throughout FY24, 1,419 cases were filed and 1,166 cases were resolved in different courts. As of March 31, 4,190 cases were still pending across various judicial platforms.
Pending Cases:
As of March 31, there were 519 cases pending before the Supreme Court. Of the 49 cases resolved, 38 (77.5%) were decided in favor of Sebi, and 11 (22.5%) were not.
The report highlighted that 14,198 complaints were resolved during 2023-24, an increase from 9,426 in the previous year. However, 887 complaints remained unresolved with the stock exchanges as of March 31, up from 590 at the same time last year.
Sebi investigated 342 cases related to securities law violations, completing 197 of them. The total penalties for these securities market violations amounted to ₹74.66 crore.
Sebi also initiated inspections of 25 mutual funds and their registrars and share transfer agents, as well as 13 portfolio managers.
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