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Sebi adjudication proceedings hit decade low of 135 in FY26
Fresh adjudication proceedings taken up by the Securities and Exchange Board of India fell to 135 in fiscal year 2026, the lowest in a decade, down from 204 a year earlier, according…
Fresh adjudication proceedings taken up by the Securities and Exchange Board of India fell to 135 in fiscal year 2026, the lowest in a decade, down from 204 a year earlier, according to Mint’s analysis of Sebi data. The number of adjudication orders passed against registered intermediaries also declined to 88 from 116.
The decline comes as listed companies and market intermediaries have strengthened compliance, surveillance and internal controls, while Sebi appears to be directing more of its enforcement capacity towards violations that pose greater risk to investors. Brokers accounted for 41 adjudication orders, followed by merchant bankers at 14 and investment advisers at nine.
Sebi completed 202 insider-trading investigations in FY26, up from 192 a year earlier, and initiated 72 probes into suspected price and volume manipulation, compared with 61 in FY25. Front-running investigations rose to 49 from 44. The regulator also conducted IT inspections of 18 intermediaries in FY26, up from 11 in the previous year.
Indian Opinion Analysis
Sebi’s shift from volume-based to risk-based enforcement mirrors a global trend among market regulators, who now prioritise cases with systemic impact over minor compliance lapses. The distinction between adjudication orders and final orders is critical: adjudication covers monetary penalties for rule breaches, while final orders involve serious remedies such as trading bans. This reallocation of resources, however, leaves unanswered the question of whether smaller violations are truly being deterred or simply left unaddressed. For investors, the key metric to watch is the rising number of insider-trading investigations (202 in FY26) and front-running probes (49), signalling where Sebi is placing its bets. The next annual report, due in late 2026, will reveal whether this targeted approach curbs major market abuse or opens gaps in oversight.
Source: livemint.com
This story was synthesised by AI from the source linked above.
