Markets regulator Sebi has reported a sharp rise in settlement pleas, receiving 703 applications in 2024-25 to resolve alleged violations of securities laws without prolonged litigation. This marked a steep increase from 434 applications filed in 2023-24.According to Sebi’s 2024-25 annual report, 284 of these pleas were settled through appropriate orders, while 272 applications were returned, rejected, or withdrawn, PTI reported. The settlement mechanism enables entities to resolve cases by paying a fee and meeting specified conditions, thus avoiding a protracted legal process.For the 284 cases settled during the year, Sebi collected Rs 798.87 crore in settlement charges along with Rs 64.84 crore as disgorgement. These orders covered a wide range of alleged violations, including insider trading, fraudulent trading practices, and breaches involving Alternative Investment Funds (AIFs), mutual funds, and Foreign Portfolio Investors (FPIs).The regulator also dealt with a number of appeals before the Securities Appellate Tribunal (SAT). A total of 533 new appeals were filed in 2024-25, compared with 821 in the previous fiscal. Of the 422 disposed cases, 308 appeals (73 per cent) were dismissed, 23 (5 per cent) allowed, 42 (10 per cent) upheld with modification, 21 (5 per cent) remanded, and 28 (7 per cent) withdrawn. Nearly 62 per cent of disposed appeals related to violations under the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003.At the same time, Sebi said “difficult-to-recover” (DTR) dues climbed to Rs 77,800 crore in FY25, up from Rs 76,293 crore at the end of March 2024. These dues remain unrecovered despite all recovery efforts. Sebi clarified that classifying dues as DTR is purely an administrative exercise and does not prevent recovery officers from pursuing them if circumstances change.
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