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 ..... nsider Trading) Regulations, 2015 , (I) after Chapter 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. regulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to SEBI: Provided that such analysis is not derived from professional or confidential communication 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld reasonably be expected to reveal his or her identity and in case where such information cannot be expunged, the Informant 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Informants who are considered tentatively eligible for a Reward, shall submit the Informant Reward Claim Form set out in Schedule E to the Board within the period 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o use or to rely on information received otherwise. (5) No person shall have the right to compel disclosure of the identity, existence of an Informant or the information provided by an Informant, except 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, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Code of Conduct, is void in so far as it purports to preclude any person, other than an advocate, from submitting to the Board information relating to the violation of the securities laws that has occurred, is occurring or has a reasonable 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 se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the sub-regulation so re-numbered the following sub-regulation shall be inserted, namely, (2) For the purpose of Chapter IIIA, the Board may,- i. by circular, specify procedures and processes for carrying out the purposes of these regulations; ii remove any difficulty 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.INDIVIDU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h any additional documents to this form, if necessary. 11. Identify any documents or other information in your submission that you believe could reasonably be expected to reveal your identity and explain the basis for your belief that your identity would be revealed if the documents were disclosed to a third party. 12. Provide details of connection amongst the Informant, the company whose securities are involved and the person against whom information is being provided: IV. DECLARATION 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 Reward at 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g any gratuitous reward to the Informant or where the Securities and Exchange Board of India determines that it is necessary to seek such information to accomplish the purpose of the Securities and Exchange Board of India Act including for the protection of investors, sharing with foreign securities regulators and foreign and Indian law enforcement agencies, etc.; (c) I am and shall continue to be legally obligated to provide the original Voluntary Information Disclosure Form without demur within seven (7) calendar days of receiving such request from the Securities and Exchange Board of India. Signature: . Date: dd/mm/yy Place: (IV) after Schedule D, the following Schedule shall be inserted, namely, SCHEDULE E [See regulations 7D and 7E] Form for Informant s Reward Claim to be submitted to the Board within the time specified in the intimation of prima facie eligibility to receive an Informant Reward. All fields are mandatory I . PERSONAL INFORMATION A. Informant: Last name:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 it is not so found. I/we fully understand that I/we may be subject to action under securities laws as well as Section 182 of the Indian Penal Code, 1860 (45 of 1860) and ineligible for an Informant Reward if, in my/our submission of information or in any other dealings with the Board, I/we knowingly and wilfully make any false, fictitious, or fraudulent statements or representations, or use any false writing or document knowing that the writing or document contains any false, fictitious, or fraudulent statement. Signature: . Date: dd/mm/yy Place: V CERTIFICATE BY LEGAL REPRESENTATIVE (where applicable) I hereby certify as follows,- (a) I have reviewed the completed and signed claim form for completeness and accuracy and the information contained th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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