Report Insider Trading and Get Rs 10 Crore Prize!

SEBI raises reward for informant for breach of Insider Trading Regulation 10 times

MUMBAI: The Securities and Exchange Board of India (Sebi) on Tuesday approved amendments to the rules relating to independent directors and increased the amount of reward paid to an informant for violating the Insider Trading Regulation by 10 times.

The Board of SEBI has also approved research on violations of the Insider Trading Regulation. In which the amount of reward paid to the informant who informed about the violation of Insider Trading Regulation has been increased ten times to a maximum of Rs 10 crore which is currently Rs 1 crore.

The Board of Directors approved SEBI (Prohibition of Inside Trading) Regulations in 2015 and some of the Regulations approved by the Board of Directors with the objective of streamlining the process of reward payment and increasing the amount of prize money under the notification mechanism. Was. ' If the total prize money payable to the informant is Rs 1 crore or less, the prize will be awarded by SEBI after issuing the final order.

Of course, if the amount of reward payable to the informant is more than Rs 1 crore, SEBI may offer an interim reward of up to Rs 1 crore after issuing the final order. The outstanding prize money will be disbursed only after receiving financial approvals at least twice the amount of compensation payable by SEBI.

SEBI during its board meeting on Tuesday approved amendments to regulatory provisions relating to independent directors for listed companies. Under the new rules, the removal of an independent director will be done through a special resolution approved by the shareholders. The new research includes the required qualifications and the resignation of independent directors and appearing before the audit committee.