Sebi slashes pending case load in FY23

livemint.com:

NEW DELHI : The Securities and Exchange Board of India (Sebi) significantly reduced the number of pending cases in FY23 as the regulator focused on resolving long pending litigation, according to the annual report of the markets regulator. The total number of cases pending before various adjudication officers of Sebi fell to 1,950 in FY23 from 6,924 in FY22, data showed. This reduction in number of pending cases is largely due to a single batch of cases involving trading in illiquid stock options where Sebi had initiated proceedings against more than 13,000 cases.

In FY23, Sebi disposed 11,824 cases against 546 cases in the previous year. While Sebi did not provide the exact number of illiquid stock options cases closed during FY23, it said 10,981 entities have settled their cases. Last year, it provided a one-time settlement scheme for these cases.

Also, the number of pending cases pertaining to enforcement action at Sebi have seen a fall too. According to the data, the number of cases pertaining to enforcement action fell from 426 last year to 160 in FY23. Enforcement action is where Sebi issues directives or prohi-bitory orders against market entities to safeguard the interests of investors at large.

During FY23, Sebi passed 568 orders against 3,731 entities excluding the illiquid stock option cases. Of these, orders were passed against 1,656 entities for prevention of fraudulent trade practices, while insider trading and takeover code violations resulted in orders against 328 entities. In the annual report, Sebi also said it was planning to enhance group level reporting of transactions by conglomerates.