On August 05, 2021, the Securities Exchange Board of India makes Securities and Exchange Board of India (Prohibition of Insider Trading) (Second Amendment) Regulations, 2021 to amend the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.
Key Highlights of the amendment:
Regulation 7D (1A), which specifies the reward payable, has been inserted:
“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.”
- The words ‘one crore’ substituted by ‘ten crores’ in the Proviso of Regulation 7D as mentioned below:
Provided that the amount of Reward shall be ten percent of the monetary sanctions collected or recovered and shall not exceed Rupees Ten crores or such higher amount as the Board may specify from time to time.
- The Proviso mentioned below has been omitted:
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.