Regulation 7D - Informant Reward - Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015

1 [Informant Reward. 7D . (1) 2 [ The ] Board may at its sole discretion, declare an Informant eligible for Reward and intimate the Informant or his or her legal representative to file an application in the format provided in Schedule-E for claiming such Reward: Provided that the amount of Reward shall be ten percent of the monetary sanctions 3 [ **** ] and shall not exceed Rupees 4 [ ten crores ] or such higher amount as the Board may specify from time to time: 5 [ **** ] 6 [ (1A) If the total reward payable is less than or equal to Rupees One Crore, the Board may grant the said reward upon the issuance of the final order by the Board: Provided that in case the total reward payable is more than Rupees One Crore, the Board may grant an interim reward not exceeding Rupees One Crore upon the issuance of the final order by the Board and the remaining reward amount shall be paid only upon collection or recovery of the monetary sanctions amounting to at least twice the balance reward amount payable. ] (2) In case of more than one Informant jointly providing the Original Information, the Reward, as specified in the intimation under sub-regulation (1), shall be divided equally amongst the total number of Informants. (3) 7 [ Any reward, whether interim or otherwise, ] under these regulations shall be paid from the Investor Protection and Education Fund. ] 8 [ NOTE : An illustrative table of the reward payable under this provision is stated below: Illustrative table of the reward payable (Amount in crore rupees) A. Monetary Sanctions 100.00 20.00 10.00 5.00 1.00 B. Total Reward Payable = 10% of Monetary Sanctions subject to maximum of ₹ 10.0 crores. 10.00 2.00 1.00 0.50 0.10 C. Maximum Amount Payable as Interim Reward (on the issuance of final order by the Board against the person directed to disgorge) = Total Reward Payable (B) or ₹ 1.00 Crore, whichever is less. 1.00 1.00 D. Balance Amount of Reward Payable (B - C). 9.00 1.00 NIL because the entire reward was paid after passing of final order E. Minimum Amount to be collected / recovered by SEBI, for balance amount of reward (D) to become payable = Twice the Balance Amount of Reward Payable (2 x D). 18.00 2.00 Not Applicable as the amount of interim reward itself is equal to total eligible reward Not Applicable as the amount of interim reward itself is equal to total eligible reward Not Applicable as the amount of interim reward itself is equal to total eligible reward ] ************* NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2019/32 dated 17-09-2020 w.e.f. from 100th day from 17-9-2019 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/37 dated 05-08-2021 before it was read as, Upon collection or substantial recovery of the monetary sanctions amounting to at least twice the Reward, the 3. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/37 dated 05-08-2021 before it was read as collected or recovered 4. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/37 dated 05-08-2021 before it was read as One crore 5. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/37 dated 05-08-2021 before it was read as, Provided further that the Board may if deemed fit, out of the total Reward payable, grant an interim reward not exceeding Rupees Ten lacs or such higher amount as the Board may specify from time to time, on the issue of final order by the Board against the person directed to disgorge. 6. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/37 dated 05-08-2021 7. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/37 dated 05-08-2021 before it was read as, The Reward 8. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/37 dated 05-08-2021