Submission of Information to the Office of Informant Protection

Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations) was amended, vide notification dated September 17, 2019, by inserting a new chapter (IIIA) dealing with informant policy in relation to insider trading laws. The amendments introduced therein came into force with effect from December 26, 2019.

The salient features of the informant policy are as follows:

1. Office of Informant Protection (‘OIP’): OIP has been established by SEBI as an independent office for receiving and processing Voluntarily Information Disclosure Form(s) (VID Form).

2. Submission of information: An informant may voluntarily submit original information pertaining to any violation of insider trading laws to the OIP, through a VID Form. The information may be submitted by the informant directly in which case his identity would be required to be revealed at the time of submission of the VID Form. In case, the information is submitted through a legal representative, the identity of the informant is not required to be revealed at the time of submission of the VID Form. However, the identity of the informant would be required to be revealed prior to payment of Reward, if any.

3. Reward: Reward would be given in case the information provided leads to disgorgement of at least Rupees one crore, in accordance with the PIT Regulations.

4. Confidentiality of Informant: The confidentiality regarding the identity of the informant would be protected through the OIP.

5. Protection against victimization: Every person required to have a Code of Conduct under PIT 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 VID Form.

Securities Exchange Board of India

[Press Release dt. 24-12-2019]

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