The SEBI has notified a new set of regulations to amend the existing SEBI (Prohibition of Insider Trading) Regulations, 2015 which shall come into force as on the date of its publication in the Official Gazette. The amendment relates to the provisions of reward to informants.
| Sr. No. | Amendment | Comments | ||||||||||||||||||||||||||||||||
| 1 | Substitution, Omission: Regulation 7D(1)
(i) the words “Upon collection or substantial recovery of the monetary sanctions amounting to at least twice the Reward, the” shall be substituted with the word “The”. (ii) in the first proviso, (A) the words “collected or recovered” shall be omitted; (B) the words “one crore” shall be substituted with the words “ten crores”; (iii) the second proviso shall be omitted; |
The SEBI has removed the condition of collection or substantial recovery of the monetary sanctions amounting to at least twice the reward from sub-regulation (1), so as to make it clear and simple that it can declare an Informant eligible for reward without keeping in consideration the amount of collection or recovery. However, in line with this condition, a proviso is added in sub-regulation (1A) for the cases where amount of reward exceeds ₹ 1crore.
Further, in line with the sub-regulation (1) proviso is amended and also the maximum limit of reward is increased from ₹1 crore to ₹10 crore. Furthermore, second proviso which talks about interim reward is omitted and the same is now covered under the new sub-regulation (1A). |
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| 2 | Insertion: after Regulation 7D(1)
(1A) If the total reward payable is less than or equal to Rupees One Crore, the Board may grant the said reward upon the issuance of the final order by the Board: Provided that in case the total reward payable is more than Rupees One Crore, the Board may grant an interim reward not exceeding Rupees One Crore upon the issuance of the final order by the Board and the remaining reward amount shall be paid only upon collection or recovery of the monetary sanctions amounting to at least twice the balance reward amount payable. |
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| 3 | Insertion: after Regulation 7D
NOTE: An illustrative table of the reward payable under this provision is stated below: Illustrative table of the reward payable (Amount in crore rupees)
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