SEBI’s FY25 Income Rises 31% to ₹2,713 Crore; CAG Flags Internal Control Issues

India’s capital markets regulator, Securities and Exchange Board of India, reported a strong rise in its income for the financial year 2024–25. However, an audit by the national auditor has also highlighted certain concerns related to internal financial controls and accounting processes.

SEBI Reports Strong Growth in Income

For FY25, Securities and Exchange Board of India recorded total income of ₹2,713 crore, representing a 31% increase compared with ₹2,075 crore in FY24.

A major contributor to this growth was the sharp rise in settlement and compounding charges, which increased significantly during the year—from ₹104 crore in FY24 to ₹815 crore in FY25.

The regulator’s capital fund also expanded considerably, rising by nearly 30% to ₹7,235 crore, reflecting stronger financial reserves.

Investment Portfolio Expands

During the year, the regulator continued to maintain a diversified investment portfolio.

Its investments included:

• ₹2,857 crore in government securities
• ₹2,215 crore in deposits with scheduled banks
• ₹30 crore invested in the National Centre for Financial Education

These investments form part of the regulator’s financial management strategy for maintaining stable reserves.

CAG Highlights Internal Control Concerns

Despite the strong financial performance, the audit conducted by the Comptroller and Auditor General of India identified several issues related to internal controls.

According to the audit observations, there were discrepancies between balances maintained at SEBI’s head office and its branch offices, suggesting incomplete accounting of certain transactions.

The report also pointed out unreconciled differences in lease deposits and inconsistencies in asset records.

Issues in Asset and Lease Records

The audit further noted that some assets recorded as “disposed of” had not been removed from the official accounting records.

Additionally, the lease deposit liabilities reported in financial statements did not fully match the amounts calculated based on executed lease agreements, indicating a need for improved reconciliation and documentation practices.

Summary

• Securities and Exchange Board of India reported FY25 income of ₹2,713 crore, a 31% rise from ₹2,075 crore in FY24.
• Growth was driven largely by higher settlement and compounding charges, which increased to ₹815 crore.
• The regulator’s capital fund rose nearly 30% to ₹7,235 crore.
• Investments include government securities, bank deposits, and funding for the National Centre for Financial Education.
• The Comptroller and Auditor General of India flagged internal control and accounting discrepancies in its audit report.
• Issues included unreconciled balances, asset record inconsistencies, and lease deposit differences.

Disclaimer

This article is based on publicly available information and official statements. The content is intended for informational purposes only. The publication does not independently verify third-party claims or assertions mentioned in the developments.