March 29, 2017

SEBI's own financial statement

A story I did last week, in the organisation I work for currently, on India's stock market regulator SEBI's own financial statement for 2015-16 (Apr-Mar) which the regulator released last week, almost a year after the 2015-16 financial year got over. It has taken SEBI almost 25 years to make its own financials public.

SEBI 2015-16 annual accounts show 52% YoY rise in total expenditure
Mar 23, 2017
    NEW DELHI - The capital markets regulator, Securities and Exchange Board of India, spent 2.64 bln as staff costs in financial year 2015-16 (Apr-Mar), up 67% on year, while administrative expenses rose 32% on year to 778 mln rupees.
    This was revealed today in SEBI's annual accounts for 2015-16 which was made public by the regulatory body today on its website.
    SEBI's total expenditure stood at 3.74 bln rupees, up 52% on year, while its total income was 6.02 bln rupees in 2015-16, up 17% on year.
    Staff costs were termed as establishment expenses by SEBI in its annual accounts and nearly three-fourth of it was through salaries and wages with remaining being allowances, bonuses, and other expenses.
    The regulator makes most of its money from the intermediaries and other entities it regulates in the securities market. In 2015-16 (Apr-Mar) it collected fees and subscriptions from the regulated entities to the tune of 3.91 bln rupees, up 21% on year.
    SEBI also earned income from investing its accumulated cash reserves which is kept in a general fund account. Its income from investments, which were predominantly in bank deposits, was 1.86 bln rupees in 2015-16, up 9% on year.
    Interestingly, the highest fee collection by SEBI is from equity derivatives segment brokers of the stock exchanges. SEBI collected 786 mln rupees from them in 2015-16, 11% more than the year ago period. Fees for offer documents filed by companies and mutual funds amounted to 730 mln rupees in 2015-16, down 2.5% on year.
    Registration, annual, renewal and other charged by SEBI to foreign portfolio investors and their sub-accounts amounted to 609 mln rupees in 2015-16, up 40% on year.
    Among other intermediaries, SEBI collected 342 mln rupees from cash market segment brokers of stock exchanges in 2015-16, up 6% on year, while it got 339 mln rupees worth of takeover fees from companies which was 24% lower than the year ago figure.
    After transferring the excess of income over expenditure to it, the general fund account of SEBI had 28.22 bln rupees on Mar 31, up from 24.58 bln rupees a year ago.  End.

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