Reward of Rs 1 crore to insider trading informants: SEBI

Relevance: Prelims

The Securities and Exchange Board of India (SEBI) has announced a reward of upto one crore rupees for informants willing to provide credible information regarding insider trading cases.

Key highlights

  • This will be a part of the detailed set of rules for the new ‘Informant Mechanism’ under Prohibition of Insider Trading Regulations that was approved by the SEBI board.
  • The norms also propose a possible amnesty or settlement for minor wrongdoings in return for cooperation in the probe.
  • SEBI will 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.
  • Other major decisions include relaxation in ‘Muni Bonds’ to enable smart city developers and municipalities to raise funds through issuance and listing of their debt securities.

 

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