×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Sebi agrees to keep its funds in govt accounts

Sebi agrees to keep its funds in govt accounts
PTI
Comment E-mail Print Share
First Published: Tue, May 24 2011. 05 45 PM IST
Updated: Tue, May 24 2011. 05 45 PM IST
New Delhi: The market regulator Sebi (Securities and Exchange Board of India) has agreed to keep its surplus funds in the government accounts, as against the current practice of holding it with itself for which the regulator has faced flak from the apex auditor CAG (comptroller and auditor general).
While some market experts termed the development as Sebi giving up on its financial autonomy, others said that the move was part of various financial regulators being asked by the government to merge their funds into the government account.
Sebi, in its next meeting, will present a memorandum before its board on keeping its funds in the government accounts, a senior official said.
Such funds comprise of fees and penalties collected by the regulator from various market entities and listed firms.
Sebi estimates its total revenue for the fiscal ended 31 March 2011, at about Rs338 crore and net surplus after various expenses at about Rs180 crore. The regulator’s fee income alone is estimated at about Rs200 crore for the year.
In its last meeting, Sebi’s board of directors, which includes nominees from the union government, had asked the regulatory authority to prepare a memorandum in this regard and place the same before it, he added.
Similar moves are expected from insurance sector watchdog IRDA and pension regulator PFRDA.
The finance ministry had in 2005 sought merger of funds of regulatory bodies with the government accounts, but the issue has been hanging since then, mostly because of the move being resisted by the regulators on the ground that it would impede their autonomy.
Comment E-mail Print Share
First Published: Tue, May 24 2011. 05 45 PM IST