Markets watchdog Sebi on Tuesday decided to increase the reward amount for informants to a maximum of Rs 10 crore under the prohibition of insider trading regulations.
The regulator's board, which met on Tuesday, approved amendments to the Sebi (Prohibition of Insider Trading) Regulations, 2015.
The changes are aimed at streamlining the process of reward payment and to enhance the quantum of reward under the informant mechanism.
With the amendments, the maximum reward amount will be increased to Rs 10 crore from Rs 1 crore.
"If the total reward payable to the informant is less than or equal to Rupees One Crore, then the reward may be granted by Sebi after the final order is issued," Sebi said in a release after the board meeting.
According to the release, if the total reward payable to the informant is more than Rs 1 crore, then an interim reward not exceeding Rs 1 crore could be granted by Sebi after the final order is issued.
"The remaining reward amount will be granted only upon receipt of the monetary sanctions amounting to at least twice the balance of the reward amount payable by Sebi," it noted.
The watchdog has been stepping up efforts to curb possible insider trading activities in the stock market.
(Published 29 June 2021, 14:32 IST)
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