If the total reward payable to the informant is more than Rs 1 crore, an interim reward not exceeding Rs 1 crore may be granted by Sebi, after the final order is issued, the regulator said in a statement issued after its board meeting.
“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,” the regulator said.
Sebi said that if the total reward payable to the informant is less than or equal to Rs 1 crore, the reward may be granted by it after the final order is issued.
The move is expected to further bolster Sebi’s arsenal in fighting insider trading cases. While the regulator has brought several cases of insider trading forward in the past few years, it has struggled to make a strong case due to lack of information.
Earlier, Sebi had amended the PIT rules to increase the resources and tools available with itself to reduce cases of insider trading in the stock market.
