SEBI has notified the Informant Mechanism and Informant Reward provisions in the SEBI (Prohibition of Insider Trading Regulations) 2015, under a new Chapter IIIA thereof. The mechanism specifies the procedure for reporting and processing of the information received from an informant and the incentives and protection for informants, as follows:
The amendments have been made effective from the 100th day of their notification, i.e. 26 December 2019, so as to enable market participants to become conversant with the requirements and create necessary systems for implementation.
To refer to the notification of the SEBI (Prohibition of Insider Trading) (Third Amendment) Regulations 2019, dated 17 September 2019, click here.
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