Sebi's total income up 1.55% to Rs 826 crore in FY21

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Capital markets regulator Sebi's total income marginally grew to Rs 826 crore in 2020-21, mainly due to increase in earnings from investments and fees. Also, the total expenditure of the regulator rose to Rs 667.2 crore for the year ended March 31, 2021, from Rs 588.14 crore in the previous fiscal, according to the annual accounts of the Securities and Exchange Board of India (Sebi) made public on Monday.

The establishment expenses climbed to Rs 437.46 crore during the period under review from Rs 375.69 crore in the preceding fiscal, other administrative expenses increased to Rs 149.22 crore from Rs 147.88 crore and expenditure under depreciation & amortisation category grew to Rs 80.52 crore from Rs 64.55 crore. On the other hand, the regulator's fee income rose to Rs 610.10 crore from Rs 608.26 crore, income from investments widened to Rs 182.21 crore from Rs 170.35 crore and other income increased to Rs 21.5 crore from Rs 18.15 crore.

As per the annual accounts, income from investments head is "overstated by including excess accrued interest on investment in bonds -- government securities for the year 2020-21 by Rs 1.09 crore. This has also resulted in overstatement of surplus earned during the year by the same amount". Overall, the market watchdog's total income rose to Rs 825.67 crore in FY21 from Rs 813.04 crore in 2019-20 in the preceding fiscal, indicating a growth of 1.55 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.