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.