A quick look into Sebi's fresh push to crackdown on insider trading

The market regulator recently raised the reward for providing credible information that leads to prosecution from Rs 1 crore to Rs 10 crore

Sebi
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Sebi

Samie Modak Mumbai
In 2019, the Securities and Exchange Board of India (Sebi) introduced the ‘informant mechanism’ to crackdown on the menace of insider trading. Initially, the regulator announced a reward of Rs 1 crore to any individual who provided credible information that led to prosecution.

The mechanism has not yet taken off. Last month, Sebi increased the reward from Rs 1 crore to Rs 10 crore and also streamlined the framework in a bid to give a fresh push.

“The suggested amendments are to streamline the process of reward payment, enhance the quantum and certainty of reward with an intent

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First Published: Jul 27 2021 | 7:04 PM IST

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