Blitz Bureau
NEW DELHI: The Securities and Exchange Board of India (Sebi) is moving forward with a significant overhaul of its regulatory framework, aimed at simplifying market access for foreign investors, even as it confronts a growing challenge of unrecovered dues totaling a record ₹77,800 crore.
In its annual report for 2024-25 fiscal year, the market regulator disclosed that this substantial amount has been classified as “difficult-to-recover” (DTR), an increase of approximately 2 per cent from the preceding year. A significant portion of these dues, over ₹61,200 crore, is entangled in prolonged cases pending before various court-appointed committees.
Overhaul in works amidst mounting unrecovered dues of ₹77,800 crore
An additional ₹12,300 crore is tied to proceedings in judicial bodies such as the National Company Law Tribunal (NCLT). Sebi has clarified that the DTR classification is an administrative measure and does not halt recovery efforts, should circumstances permit.
In parallel to these enforcement challenges, Sebi has laid out an ambitious reform agenda. A key proposal is the introduction of the “SWAGAT-FI” (Single Window Automatic & Generalised Access for Trusted Foreign Investors) framework. This initiative is designed to create a streamlined, single-point registration process for low-risk foreign entities like sovereign wealth funds and pension funds, aiming to reduce procedural friction and attract long-term foreign capital.
The reforms extend beyond foreign portfolio investors. The regulator is also undertaking a comprehensive review to simplify complex regulations and cut compliance costs across the board. This includes re-evaluating the takeover code to align with global standards, simplifying offer documents for public issues to enhance investor understanding, and reviewing the margin trading funding framework.
While rolling out these investor-friendly measures, Sebi has also intensified its supervisory role. The past year has seen a marked increase in the number of inspections of stockbrokers and investment advisors, signaling a tougher stance on compliance and market conduct. This dual approach indicates a strategic push by the regulator to balance making Indian markets more attractive with ensuring robust investor protection and market integrity.