DTR : Sebi, the capital markets regulator, has classified Rs 67,228 crore in dues as “difficult to recover” (DTR) by the end of March 2022.
According to Sebi’s annual report for 2021-22, the regulator has dues worth Rs 96,609 crore that must be recovered from entities, including those that failed to pay the fine imposed on them, failed to pay fees due to the markets watchdog, and failed to comply with its direction to refund investors’ money.
The regulator stated that Rs 63,206 crore, or 65 percent of the total, is related to the Collective Investment Scheme (CIS) and deemed public issues of PACL Ltd and a Sahara Group business, Sahara India Commercial Corporation Ltd.
In addition, Rs 68,109 crore, or 70% of the total sum owed, is the subject of parallel actions before several courts and court-appointed committees. In these instances, Sebi’s recovery proceedings are subject to the directives of the appropriate courts or committees.
The agency classified dues totaling Rs 67,228 crore as Difficult To Recover (DTR) in its annual report. Sebi defined DTR as “dues that could not be recovered even after exhausting all recovery options.”
It was clarified that the segregation of such DTR dues is solely administrative in nature and that the recovery officers will be able to recover the sum so segregated as DTR as and when any of the DTR characteristics alter from a recovery standpoint.
The Securities and Exchange Board of India (Sebi) has the authority to recover penalties imposed by the Adjudicating Officer, as well as money ordered to be disgorged or refunded to the regulator. In addition, the markets watchdog took up 59 new cases involving securities law violations for examination in 2021-22, which is significantly less than the 94 cases taken up in the previous fiscal year.
The cases involved allegations of securities law violations such as market manipulation, price fixing, and insider trading. Of the 59 cases investigated, 38 were related to market manipulation and price rigging; 17 were for insider trading, and the remaining four were for other securities law offenses.
Sebi begins an investigation based on information obtained from sources such as its integrated surveillance department, other operational divisions, and foreign government agencies. During the investigation phase, market data such as order and trade logs, transaction statements, and exchange reports are analyzed.
During the investigation, Sebi examined bank records such as account and KYC details, information about a firm, call data records, and information collected from market intermediaries. Following the end of an investigation, the watchdog stated that when violations of securities laws and obligations connected to the securities market were discovered, criminal action was begun.
During 2021-22, the agency took enforcement action in 176 complaints and settled 226. There were 426 cases awaiting action by the end of March 2022.
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