The Securities and Exchange Board of India (SEBI) has recorded a remarkable 48% rise in total income for the fiscal year 2023-24, which reached Rs. 2,075 crore (US$ 238.1 million). This surge in income is primarily attributed to higher earnings from fees and subscriptions, marking a period of strong financial performance for the regulatory body.

SEBI’s fee income saw a significant increase, rising to Rs. 1,851.5 crore (US$ 212.4 million) from Rs. 1,213.22 crore (US$ 139.2 million) in the previous fiscal year. This boost in income highlights the growing volume of market activities that are generating increased revenue for the regulator.

In addition to fee income, income from investments also rose to Rs. 192.41 crore (US$ 22.1 million), while other income saw an uptick to Rs. 18 crore (US$ 2.1 million). SEBI’s diversified revenue sources include annual fees, listing fees, stock exchange contributions, registration and renewal fees, and company offer document filings. These varied income streams reflect SEBI’s growing influence in maintaining a robust regulatory environment for the Indian securities market.

Expenditure Growth and Financial Stability

SEBI’s total expenditure in FY24 increased to Rs. 1,006 crore (US$ 115.4 million), up from Rs. 851.33 crore (US$ 97.7 million) in FY23. The growth in expenditure was largely attributed to higher establishment expenses of Rs. 696.43 crore (US$ 79.9 million) and administrative costs of Rs. 218 crore (US$ 25 million). This rise in spending indicates SEBI’s continued investment in strengthening its internal infrastructure and administrative functions to keep pace with the growing demands of the financial sector.

Despite the increase in expenditure, SEBI maintains a strong financial position, with its general fund closing at Rs. 5,573 crore (US$ 639.4 million), including a surplus of Rs. 1,065 crore (US$ 122.2 million). These surplus funds provide a cushion for future expenditures and investments, reinforcing SEBI's ability to continue its regulatory and developmental roles effectively.

Additionally, the Investor Protection & Education Fund (IPEF) stood at Rs. 533.17 crore (US$ 61.2 million), while the Disgorgement Fund had a balance of Rs. 7.38 crore (US$ 847,000). These funds are vital for investor protection and education as well as ensuring the enforcement of regulations against any malpractices in the market.

SEBI’s Investment Strategies and Financial Stability

To maintain its financial strength and long-term stability, SEBI has strategically invested Rs. 2,521.23 crore (US$ 289.3 million) in bonds, government securities, and bank deposits. These investments help SEBI generate steady returns, further contributing to its financial resilience.

SEBI’s approach to managing its finances is an example of prudent financial management, ensuring that the regulator has adequate resources to fulfill its mandate of overseeing and regulating the Indian securities markets.

Conclusion

SEBI's financial performance in FY24 highlights its robust growth trajectory, driven by higher fees and subscriptions. The 48% increase in income, alongside the strong surplus and investment strategies, positions SEBI to continue playing a pivotal role in the growth and regulation of India’s securities markets. With an increase in expenditure focused on expanding its infrastructure, SEBI is prepared to support the evolving financial landscape and contribute to India’s economic stability in the coming years.

The Current active IPO is NAPS Global.

The Closed IPOs is Balaji Phosphates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Update.