SEBI's Total Income Surges 48% to ₹2,075 Crore in FY 2023-24

The Securities and Exchange Board of India (SEBI) recorded a 48% year-on-year surge in total income, reaching ₹2,075 crore in the financial year 2023-24, primarily due to higher earnings from fees and subscriptions. This substantial growth underscores the increasing activity in India’s capital markets and the regulator’s key role in overseeing financial transactions and ensuring market stability.

According to SEBI’s annual statement of accounts for 2023-24, which was made public on Tuesday, the regulator’s fee income climbed to ₹1,851.5 crore, significantly higher than ₹1,213.22 crore earned in the previous fiscal year. The rise in fee income is attributed to increased market participation, heightened regulatory oversight, and the expanding ecosystem of market infrastructure institutions.

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Breakdown of SEBI’s Revenue Sources

Apart from fee income, SEBI’s investment earnings grew to ₹192.41 crore, compared to ₹161.42 crore in the previous fiscal. Additionally, other sources of income rose to nearly ₹18 crore, up from approximately ₹15 crore in FY23.

The regulator identified fees and subscriptions as its primary revenue stream, which includes:

• Annual fees and listing charges from stock exchanges.
• Income from registrations, renewals, applications, and offer documents submitted by companies and market infrastructure institutions.
• Other regulatory fees collected from market participants.
   

The steady rise in SEBI’s income highlights the continued growth of India’s capital markets, which have witnessed increased investor participation, frequent IPO filings, and a broader range of financial instruments.

Expenditure on the Rise

While SEBI’s income grew, its total expenditure also saw a rise, reaching ₹1,006 crore in FY24, compared to ₹851.33 crore in the preceding financial year. The primary components of this increase include:

Establishment expenses, which rose to ₹696.43 crore, up from ₹576 crore in FY23.
Other administrative costs, which climbed to ₹218 crore, compared to ₹172.42 crore in the previous fiscal.

These expenses reflect the regulator’s ongoing efforts to enhance market surveillance, strengthen investor protection measures, and improve enforcement mechanisms to ensure the integrity of the financial markets.

SEBI’s Financial Position and Investments

SEBI reported a general fund closing balance of ₹5,573 crore, which includes a surplus of ₹1,065 crore transferred from the Income and Expenditure Account for FY24. The regulator maintains earmarked funds, notably the Investor Protection & Education Fund (IPEF) and the Disgorgement Fund, to safeguard investor interests.

• The IPEF had a closing balance of ₹533.17 crore, including ₹27.66 crore from investment earnings.
• The Disgorgement Fund stood at ₹7.38 crore for FY24.
   

Out of SEBI’s total investments of ₹2,521.23 crore, the regulator allocated ₹1,255.31 crore to bonds and government securities, ₹1,235.92 crore in fixed deposits with scheduled banks, and ₹30 crore towards NCFE subscriptions. Additionally, earmarked funds (IPEF and Disgorgement Fund) were invested in bank deposits amounting to ₹482 crore.

Market Implications and Future Outlook

SEBI’s robust financial performance in FY24 highlights the increasing depth and maturity of India’s capital markets. The rise in revenue from fees and subscriptions reflects the growing participation of both institutional and retail investors, as well as the expansion of stock exchanges, mutual funds, and other financial intermediaries.

Moving forward, SEBI is expected to continue its focus on strengthening market regulations, improving transparency, and enhancing investor protection mechanisms. With an increasing number of companies seeking public listings and the rapid expansion of financial instruments like derivatives and ETFs, SEBI’s role in ensuring a well-regulated market ecosystem becomes even more crucial.

Additionally, technological advancements in financial markets, such as algorithmic trading, digital assets, and blockchain-based securities, may require SEBI to evolve its regulatory framework to address emerging risks and opportunities. The regulator is likely to invest more in surveillance systems, cybersecurity measures, and investor awareness programs to keep pace with these developments.

As SEBI continues to adapt to the changing financial landscape, its strong financial position ensures that it has the necessary resources to enhance market stability, enforce compliance, and foster investor confidence in India’s capital markets.