SEBI classified Rs67,228 crore of its debt as "Difficult to Recover"

3 Nov 2022 , 08:54 AM

At the end of March 2022, the capital markets regulator Sebi classified debts totaling Rs 67,228 crore as “difficult to recover.” According to Sebi’s annual report for 2021—22, the regulator has outstanding debts totaling Rs96,609 crore that must be paid by various organizations, including those that disobeyed orders to return investors’ funds and failed to pay the punishment that was imposed on them.

According to the regulatory body, out of the entire amount of Rs96,609 crore, Rs63,206 crore, or 65% of it, is related to the Collective Investment Scheme (CIS) and deemed public offerings of PACL Ltd and Sahara Group firm, Sahara India Commercial Corporation Ltd.

In addition, court-appointed committees and other courts are involved in parallel processes over Rs68,109 cr or 70% of the total debt. Sebi’s recovery procedures in these situations are governed by the directives of the relevant courts or committees.

The agency classified debts of Rs 67,228 crore as Difficult To Recover in its annual report (DTR). According to Sebi’s definition of DTR, these debts are those that remain unpaid even after all available collection options have been used.

It was made clear that grouping such DTR obligations were purely administrative and that the recovery officers would still be able to recover the money as soon as any DTR criteria changed from a recovery standpoint.

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