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TMI BlogSecurities and Exchange Board of India (Prohibition of Insider Trading) (Third Amendment) Regulations, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... pter III and before Chapter IV, the following Chapter shall be inserted, namely, - "Chapter IIIA Definitions. 7A. (1) In this Chapter, unless the context otherwise requires:- (a) 'Investor Protection and Education Fund' means the Investor Protection and Education Fund created by the Board under section 11 of the Act; (b) 'Informant' means an individual(s), who voluntarily submits to the Board a Voluntary Information Disclosure Form relating to an alleged violation of insider trading laws that has occurred, is occurring or has a reasonable belief that it is about to occur, in a manner provided under these regulations, regardless of whether such individual(s) satisfies the requirements, procedures and conditions to qualify for a reward; (c) 'Informant Incentive Committee' means the High Powered Advisory Committee constituted by the Board in the manner as may be specified under regulation 11 of the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018. (d) 'insider trading laws' means the following provisions of securities laws,- i. Section 15G of the Act; ii. regulation 3 of these regulations; iii. regulation 4 of these regulations; iv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... munication protected under the Indian Evidence Act, 1872 (1 of 1872); (j) 'own knowledge' means relevant information in the possession of the Informant not derived from publicly available sources: Provided that such knowledge is not derived from professional or confidential communications protected under the Indian Evidence Act, 1872 (1 of 1872); (k) 'Reward' means any gratuitous monetary amount for which an Informant is declared eligible as per the provisions of these regulations; (l) 'securities laws' means the Act, the Securities Contract (Regulations) Act, 1956 (42 of 1956), the Depositories Act, 1996 (22 of 1996), the relevant provisions of any other law to the extent it is administered by the Board and the relevant rules and regulations made thereunder; (m) 'voluntarily providing information' means providing the Board with information before receiving any request, inquiry, or demand from the Board, any other Central or State authorities or other statutory authority about a matter, to which the information is relevant; (2) Words and expressions used but not defined in these regulations but defined in securities laws, shall have the same meanings respectively assign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nformant may identify such part of information or any document that the Informant believes could reasonably be expected to reveal his or her identity. Receipt of Original Information by the Board 7C. (1) The Board may designate a division to function as the independent Office of Informant Protection. (2) The Office of Informant Protection shall perform such functions as may be specified by the Board, including,- i. Receiving and registering the Voluntary Information Disclosure Form; ii. Making all necessary communications with the Informant; iii. Maintaining a hotline for the benefit of potential Informant; iv. Maintaining confidentiality of the legal representative of the Informant and act as an interface between the Informant and the officers of the Board; v. Interacting with the Informant Incentive Committee; vi. Issuing press releases and rewards relating to Informant; and vii. Submitting an annual report to the Board relating to the functioning of the Office of Informant Protection. (3) On receipt of the Voluntary Information Disclosure Form, the Office of Informant Protection shall communicate the substance of the information along with the evidence subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod specified in the intimation sent by the Board. (2) Prior to the payment of a Reward, an Informant shall directly or through his or her legal representative, disclose his or her identity and provide such other information as the Board may require. Rejection of claim for Reward. 7G. No Reward shall be made to an Informant:- (1) who does not submit original information; (2) who has acquired the Original Information, through or as a member, officer, or an employee of:- (i) any regulatory agency constituted by or under any law in India or outside India, including the Board; (ii) any self-regulatory organization; (iii) the surveillance or investigation wings of any recognised stock exchange or clearing corporation; or (iv) any law enforcement organization including the police or any central or state revenue authorities. (3) against whom the Board may initiate or has initiated criminal proceedings under securities laws; (4) who wilfully refused to cooperate with the Board during its course of investigation, inquiry, audit, examination or other proceedings under securities laws; (5) who: (i) knowingly makes any false, fictitious, or fraudulent statement or r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcept to the extent relied upon in any proceeding initiated against such person by the Board. Explanation 1. - The confidentiality in respect of the identity and existence of the Informant shall be maintained throughout the process of investigation, inquiry and examination as well as during any proceedings before the Board and save where the evidence of the Informant is required during such proceedings, advance notice of such evidence may be provided to the noticee at least seven (7) working days prior to the date of the scheduled hearing for evidence. Explanation 2. - In proceedings before any authority other than the Board, the Board may request maintenance of confidentiality of the identity and existence of an Informant in such proceeding. Protection against retaliation and victimisation 7I. (1) Every person required to have a Code of Conduct under these regulations shall ensure that such a Code of Conduct provides for suitable protection against any discharge, termination, demotion, suspension, threats, harassment, directly or indirectly or discrimination against any employee who files a Voluntary Information Disclosure Form, irrespective of whether the information is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easonable belief that it would occur. (2) No person shall by way of any threat or act impede an individual from communicating with the Board, including enforcing or threatening to enforce, a confidentiality agreement (other than agreements related to legal representations of a client and communications there under) with respect to such communications. Explanation. - No employer shall require an employee to notify him of any Voluntary Information Disclosure Form filed with the Board or to seek its prior permission or consent or guidance of any person engaged by the employer before or after such filing. No Amnesty 7K. (1) Nothing in these regulations shall be deemed to provide any amnesty or immunity to an Informant for violation of securities law. (2) Where an action against an Informant is deemed appropriate the Board may take into account the co-operation rendered in the final determination of any penalty, sanction, direction or settlement thereof, as the case may be. (3) Where an action against an Informant is deemed appropriate, the Board while determining the value of monetary sanctions shall not take into account the monetary sanctions that the Informant is ordered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iculty in the interpretation or application or implementation of the provisions of these regulations, by issuing clarifications and specifying procedures through circulars or guidelines." (III) after Schedule C, the following Schedule shall be inserted, namely, - " SCHEDULE D [See regulation 7B] Form for Informant's Voluntary Information Disclosure to be submitted to the Board. Note: For submission of information through a legal representative, the redacted copy of the Form expunging information that may identify the Informant shall be submitted by the legal representative without expunging any information relating to the legal representative and the details relating to the violation of securities laws. *Indicates that the required field is non-mandatorily, remaining fields are mandatory I. PERSONAL INFORMATION OF THE INFORMANT A.INDIVIDUAL 1: Last Name:………………… First Name:………………… Title:……………… Address: City / State: PIN: Telephone (with State Code): Mobile: E-Mail address: Employment Details*: Permanent Account Number, if av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all. I/we would be bound by the decisions that the authority competent to grant reward may take; * I/we accept that the Securities and Exchange Board of India is under no obligation to enter into any correspondence regarding action or inaction taken as a result of my/our information. * I/we accept that the reward would be an ex-gratia payment which, subject to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, shall be granted at the absolute discretion of the competent authority. The decision of the authority shall be acceptable to me/us and I/we shall not challenge it in any litigation, appeal, adjudication, etc. * In the event of my/our death before the reward us paid to me/us, it may be paid to …………. (Details of nominee) * I/we declare that the information contained herein is true, correct and complete to the best of my/our knowledge and belief and not obtained from the categories of persons indicated in sub-regulation (2) and sub-regulation (6) of regulation 7G of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 and agree to indemnify the Board in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligibility to receive an Informant Reward. All fields are mandatory I. PERSONAL INFORMATION A. Informant: Last name:--------------------- First Name:------------------------ Title:----------------- Address: City / State: PIN: Telephone (with State code): Mobile: E-Mail Address: Employment Details: Permanent Account Number: II ORIGINAL INFORMATION SUBMITTED Online Acknowledgment Receipt Number: (Annex Original Form for Voluntary Information Disclosure, if not yet submitted to Securities and Exchange Board of India) Subject matter of submission: Date of submission: dd/mm/20 Case Name: SEBI Order No.: Date: dd/mm/20 III CONSIDERATION FOR REWARD Provide any material information that may be relevant in light of the criteria for determining the amount of Reward or denial thereof. Include any supporting documents if necessary. IV DECLARATION BY INFORMANT I/we hereby declare that,- * I/we have read and understood the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; * I/we accept that mere furnishing of information by me/us does not by itself confer on me/us right to get reward and that I/we may not get any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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