SEBI Proposes Whistle Blower Mechanism to Curb Insider Trading

On 10th June, 2019, the Securities and Exchange Board of India (SEBI) proposed a whistle blower mechanism to tackle insider trading cases. The proposed policy would be implemented by amending SEBI (Prohibition of Insider Trading) Regulations, 2015.

Salient Features

• Absolute Confidentiality: The mechanism would provide near absolute confidentiality along with appropriate safeguards, and it would help strengthen the mechanism for early detection of insider trading cases.
• Dedicated Reporting Window: It will include a dedicated reporting window, voluntary information disclosure form, wherein the informant would submit details of credible, complete and original information relating to an act of insider trading, including communication ....