Sebi Introduces Up to INR 20 Lakh Reward System For Tips On Defaulters
The informant reward committee will give its recommendations to the competent authority on the matters pertaining to eligibility of informants for reward and determination of the amount of reward payable to informants
By Teena Jose •
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Capital market regulator SEBI on Thursday introduced a reward system for up to INR 20 lakh to informants for sharing information about the assets of defaulters with an aim to recover fines from elusive offenders, according to a PTI report. The reward may reportedly be granted in interim and final stages.
According to the report, the interim reward amount will not exceed two and a half per-cent of the reserve price of the asset regarding which tips was provided or INR 5 lakh, whichever is less and the final reward amount will not exceed 10% of the dues recovered or INR 20 lakh, whichever is less.
"Information and the identity provided by the informant or the reward paid to him shall be held in confidence. A person will be considered to be an informant eligible for reward if he or she furnishes original information in relation to the asset of a defaulter concerning the dues which are certified as Difficult to Recover (DTR)," said Sebi in a guideline released.
The difficult-to-recover dues are the ones which could not be recovered even after exhausting all the modes of recovery. As per earlier reports, Sebi has segregated dues to the tune of INR 67,228 crore under 'difficult to recover' category at the end of March 2022. It had also reportedly clarified that segregation of such DTR dues is purely an administrative act and this will not preclude the recovery officers from recovering the amount so segregated as DTR as and when there is a change in any of the DTR parameters from the recovery point of view.
Furthermore, for the purpose of recommending the eligibility of reward, Sebi will set-up an informant reward committee comprising the chief general manager of Recovery and Refund Department, the concerned recovery officer having jurisdiction in the matter, another recovery officer nominated by the chief general manager and an officer in the grade of deputy general manager or higher, of the Office of Investor Assistance and Education nominated by the chief general manager in charge of Investor Protection and Education Fund (IPEF), added the report.
The informant reward committee will give its recommendations to the competent authority on the matters pertaining to eligibility of informants for reward and determination of the amount of reward payable to informants, the report said.
"The new guidelines have become effective from March 8," said Sebi.
