TaxTMI 
TaxTMI 
Securities and Exchange Board of India (Prohibition of Insider Trading) (Third Amendment) Regulations, 2019
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....ulations, 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; ....
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.... the relevant information by the Informant that may be publicly available, but which reveals analysis that is not known 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 o....
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....tificate as required under clause (iii) of this sub-regulation (2). (3) An Informant shall while submitting the Voluntary Information Disclosure Form shall expunge such information from the content of the information which could 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. Inter....
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....nformant Incentive Committee. (3) An Informant may be eligible for a Reward whether or not he reported the matter to his organization as per its internal legal and compliance procedures and irrespective of such organization's compliance officer subsequently providing the same Information to the Board. Application for Reward. 7F. (1) 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 organizatio....
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....ued to limit, the ability of the public prosecutor to share such evidence with potential witnesses or accused in connection with any criminal proceedings. (3) The Original Information and identity provided by an Informant shall be held in confidence and exempted from disclosure under clauses (g) and (h) of sub-section (1) of section 8 of the Right to Information Act, 2005 (No. 22 of 2005). (4) Subject to the law of evidence for the time being in force, nothing in these regulations shall prejudice the right of the Board to 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 ma....
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....court or tribunal for appropriate relief. (3) Notwithstanding anything contained in sub-regulation (2), any employer who violates this Chapter may be liable for penalty, debarment, suspension, and/or criminal prosecution by the Board, as the case may be: Provided that nothing in these regulations will require the Board to direct re-instatement or compensation by an employer. (4) Nothing in these regulations shall diminish the rights and privileges of or remedies available to any Informant under any other law in force. Void Agreements 7J. (1) Any term in an agreement (oral or written) 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 ....
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....oard shall upload on its website the following,- i. Annual report of the Office of Informant Protection; ii. Press release informing the public that an intimation to the Informant has been issued under Regulation 7D; iii. Press release informing the public that a Reward has been paid under these regulations and the amount of Monetary Sanctions recovered pursuant to the information provided by the Informant; iv. The Order issuing the Reward; Explanation. - Nothing in this regulation shall require the Board to disclose information that could identify the Informant or the information provided by the Informant." (II) existing regulation 11 shall be re-numbered as sub-regulation (1) thereof, and after 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 ....
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....stion (7), then please provide, Date of submission of original information: dd/mm/yy 9. Please describe in detail why you think the information submitted is a violation? 10. What facts or supporting material is your allegation based on? Please attach 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 ....
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....clarant, to provide to the Securities and Exchange Board of India, the original Voluntary Information Disclosure Form in the event of a request for it from the Securities and Exchange Board of India due to concerns that the Informant has not complied with these regulations or where the Securities and Exchange Board of India requires the said information for the purpose of verification for declaring 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:..................................  ....
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....ty 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 is 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 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:......