SEBI Income Rises 31% In FY25 As Settlement Charges Surge; ₹4,291 Crore Karvy Liability Recognised

Income of the Securities and Exchange Board of India (SEBI) increased 31% to ₹2,712.66 crore in the financial year ended March 31, 2025, supported by a sharp rise in settlement and compounding charges, according to the regulator’s accounts audited by the Comptroller and Auditor General of India (CAG).

The audited statements also recorded a contingent liability of ₹4,291 crore related to the Karvy Stock Broking Ltd case, which remains under litigation before the Supreme Court.

The higher income during FY25 enabled SEBI to report a surplus of ₹1,661.84 crore, compared with ₹1,064.48 crore in FY24. As a result, the regulator’s corpus fund increased to ₹7,234.66 crore during the year.

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Settlement And Compounding Charges Drive Revenue Growth

Settlement and compounding charges rose sharply during FY25. According to SEBI’s audited accounts, the income from these charges reached ₹814.55 crore during the financial year.

This compares with ₹104.13 crore recorded in FY24, indicating a more than six-fold increase.

Regulatory fee income, which SEBI collects from brokers, stock exchanges and companies filing public issues, also increased during the year. The income from regulatory fees rose 26% year-on-year to ₹2,334.08 crore, according to the accounts reviewed by the CAG.

Also, this rise in revenue streams helped the regulator's total income for the financial year go up.

The investment portfolio grows

SEBI's investment portfolio also grew a lot during FY25. As of March 31, 2025, total investments had grown to ₹8,324.31 crore, up from ₹4,853.38 crore a year earlier. The portfolio included earmarked investments of ₹3,221.43 crore and other investments of ₹5,102.88 crore.

The audited accounts indicated that the increase in investments reflected the deployment of the regulator’s surplus funds.

Karvy Case Contingent Liability

The CAG audit report also referred to contingent liabilities associated with the Karvy Stock Broking case.

According to the financial statements, the liability in respect of the appeals in the matter stood at approximately ₹4,291 crore as on March 31, 2025.

The amount includes securities amounting to ₹3,832 crore on the basis of the calculations done by the National Stock Exchange of India as on December 21, 2023, along with an interest of about ₹459 crore on the basis of 10% simple interest from January 19, 2024, until March 31, 2025.

The order issued by the Securities Appellate Tribunal in the case has been challenged by the SEBI, the National Stock Exchange, and the National Securities Depository Limited before the Supreme Court of India.

Audit Observations On Accounts

The CAG audit has also found some discrepancies related to internal controls and reconciliations in SEBI’s financial statements. The CAG audit report has mentioned that there are some unmatched intra-office balances and lease deposits. 
The above indicates that there is a lack of reconciliation between SEBI’s head office and regional offices.

The CAG audit has also found some discrepancies related to SEBI’s asset management. There were some fixed assets, for example, which were noted in the books of accounts as having been disposed of during physical verification. However, these assets were still reflected in the books.

The CAG also noted some unreconciled statutory liabilities, including ₹0.12 crore in taxes under sundry creditors, ₹0.41 crore in taxes under GST and sales tax, and ₹6.35 crore in input tax credit.

However, the CAG noted in its audit opinion on SEBI’s financial statements for the year ended March 31, 2025, that the financial statements “present a true and fair view” of SEBI’s financial position.