The Securities and Exchange Board of India (SEBI) has reported ₹76,293 crore in dues classified as difficult to recover (DTR) for the fiscal year 2023-24, marking a 4.1% increase from the previous year’s ₹73,287 crore. DTR dues are amounts that have remained unrecovered despite exhaustive efforts.
Under Section 28A of the SEBI Act, 1992, along with provisions from the Securities Contracts (Regulation) Act, 1956, and the Depositories Act, 1996, SEBI is empowered to recover penalties and enforce compliance with its directives. However, challenges remain due to pending recovery certificates and court proceedings.
As of March 31, 2024, SEBI has issued 6,781 recovery certificates, with 3,871 still pending, totaling ₹1.02 lakh crore. Recovery proceedings are often delayed by court directions, approvals, and the Insolvency and Bankruptcy Code (IBC) moratorium.
Out of 140 DTR certificates categorized as untraceable, 131 are related to individuals and 9 to companies, amounting to ₹13.3 crore and ₹15.7 crore, respectively. Additionally, there are 418 cases pending in various courts, mainly before the Securities Appellate Tribunal, and 380 companies have been deemed defunct with outstanding dues exceeding ₹3,000 crore.
