Capital markets regulator Sebi has posted a 13 per cent increase in its total income to over Rs 963 crore in 2018-19, mainly due to rise in earnings from fees and subscription income. As per the annual accounts of Sebi, the total expenditure of the regulator also rose to Rs 492.34 crore for the year ended March 31, 2019, from Rs 414.46 crore in the previous fiscal. The other administrative expenses increased from Rs 121 crore to Rs 131 crore, the establishment expenses climbed from Rs 244 crore to Rs 293 crore.
The regulator's fee income surged to Rs 750 crore from Rs 624 crore and other income rose to 17 crore from nearly Rs 10 crore. Earning from investments, however, dropped to Rs 180 crore from Rs 207 crore. Overall, the market watchdog's total income increased to Rs 963.59 crore in 2018-19 from Rs 854.78 crore in the preceding fiscal, indicating a growth of 13 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.