The Securities and Exchange Board of India (SEBI) on Tuesday came out with a new mechanism to reward whistle-blowers and other informants for sharing information about insider trading cases.
Under the new framework, it would be mandatory to disclose the source of information; besides, confidentiality regarding the identity of the informant would be protected, the regulator said.
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“Reward would be given in case the information provided leads to a disgorgement of at least ₹1 crore in accordance with the PIT (Prohibition of Insider Trading) Regulations,” said SEBI. It said that the Office of Informant Protection has been established by it as an independent office for receiving and processing the Voluntarily Information Disclosure Form.