23 Dec , 2021 By : Kanchan Joshi
NEW DELHI : Capital markets regulator Sebi's total income declined by 15% to Rs813 crore in 2019-20 mainly due to a drop in earnings from fees and subscription.
According to the annual accounts of Sebi made public on Wednesday, the total expenditure of the regulator rose to Rs588.14 crore for the year ended on March 31, 2020, from Rs492.34 crore in the previous fiscal.
The other administrative expenses increased from Rs131 crore to Rs148 crore and the establishment expenses climbed from Rs293.15 crore to Rs375.69 crore.
The regulator's fee income declined to Rs608.26 crore from Rs750.14 crore while earning from investments dropped to Rs170.35 crore from Rs180.66 crore. However, other income rose to Rs18.15 crore from Rs17.44 crore.
Overall, the market watchdog's total income declined to Rs813.04 crore in 2019-20 from Rs963.59 crore in the preceding fiscal, indicating a decline of 15.6 per cent.
The fee income included earnings from annual fees or subscription, listing fees contribution from stock exchanges, income from registration, renewal and application.
Formed by the government in 1988, the Securities and Exchange Board of India (Sebi) was given statutory powers after passage of the Sebi Act in 1992 after the Harshad Mehta scam hit the Indian markets.
As per its preamble, Sebi is mandated to protect the interests of investors in securities as well as promote and regulate the securities markets.
It regulates business in stock exchanges and other securities markets, registers and regulates various market intermediaries, including brokers, merchant bankers, registrars, portfolio managers and investment advisers, as well as foreign portfolio investors, credit rating agencies, mutual funds and venture capital funds.
Besides, Sebi is mandated to check fraudulent and unfair trade practices, insider trading and other manipulative activities.
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