The Securities and Exchange Board of India has announced a new mechanism to reward insider trading informants to uncover insider trading cases. The reward would be 10 per cent of the money collected, subject to a maximum amount of Rs 1 crore. These benefits would only be available to individuals and corporates. This is not applicable for professionals like auditors who are duty-bound to report any wrongdoing.
The above announcement is a part of the detailed set of rules for the new ‘Informant Mechanism’ under Prohibition of Insider Trading Regulations that has been approved by the SEBI board.
SEBI will also establish an Office of Informant Protection, which will be responsible for the receipt, registration and processing of the disclosure form and also for ascertaining its authenticity.
Static/Current Takeaways Important For IBPS RRB PO Mains:
- SEBI Headquarter: Mumbai; Chairman: Ajay Tyagi.
Source: The Hindu