Report Insider Trading & Get Rs 10 Crore Reward: SEBI Reward For Whistleblowing Hiked By 900%
The Securities and Exchange Board of India on Tuesday increased the reward payable to whistleblowers under its ban on insider trading regulations to Rs 10 crore from Rs 1 crore to further encourage whistleblowers to appear before the regulator.
Reward Awarded To The Whistleblower
If the total reward payable to the whistleblower is more than Rs 1 crore, Sebi may award an interim reward not to exceed Rs 1 crore, after the final order is issued, the regulator said in a statement issued after their board meeting.
Sebi said in a statement published after their board meeting that if the total reward awarded to the whistleblower exceeds Rs 1 crore, the regulator may provide an interim payment of up to Rs 1 crore once the final order is announced.
“The remaining amount of the reward will be awarded only upon receipt of monetary penalties amounting to at least twice the balance of the reward amount payable by Sebi,” the regulator said.
Sebi said that if the total reward payable to the informant is less than or equal to Rs 1 crore, the reward can be awarded by him after the final order is issued.
Sebi’s Arsenal In Fighting Insider Trading
The move is expected to further bolster Sebi’s arsenal in fighting insider trading cases. While the regulator has filed several insider trading cases in recent years, it has struggled to present a strong case due to a lack of information.
Previously, Sebi had modified the PIT rules to increase the resources and tools available to reduce cases of insider trading in the stock market.