Proposing a mechanism that provides "near absolute confidentiality along with appropriate safeguards", Sebi said it would help strengthen the mechanism for early detection of insider trading cases. Insider trading refers to trading of securities while in possession of Unpublished Price Sensitive Information (UPSI) about the particular securities. "The final reward, after adjusting the interim reward, shall be issued after collection or recovery of the monies disgorged equal atleast twice the final reward," Sebi said. With respect to an informant, Sebi could consider cooperation rendered in determining any enforcement action or settlement application. The proposed policy would be implemented by amending Sebi (Prohibition of Insider Trading) Regulations, 2015.

Source: Mint June 10, 2019 13:18 UTC