Hard-to-recover dues are those which could not be recovered even after exhausting all means of recovery.
The reward can be given in two stages – interim and final.
With an aim to recover fines from elusive offenders, capital markets regulator SEBI on Thursday launched a reward system of up to Rs 20 lakh to informers for sharing information on assets of defaulters.
The reward can be given in two stages – interim and final.
Provided that the interim award amount shall not exceed two and a half percent of the reserve price of the asset in respect of which the tips were provided or Rs.5 lakh, whichever is less and the final award amount shall not exceed 10 percent of the outstanding amount realised; or 20 lakhs, whichever is less.
Coming out with guidelines for award of reward to an informant providing reliable information about the assets of the defaulter as part of recovery proceedings, SEBI said, “The information and identity of the informant or the reward given to him shall be confidential.” will be kept.” According to SEBI, a person will be treated as an informant for reward if he furnishes original information in respect of a defaulter’s property in respect of dues which is certified as ‘difficult to recover’.
Hard-to-recover dues are those which could not be recovered even after exhausting all means of recovery.
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Along with this, the regulator released a list of 515 defaulters, where any informer can give information.
Further, for the purpose of recommending the eligibility of reward, SEBI shall constitute an Informant Reward Committee comprising the Chief General Manager, Recovery and Refund Department, the concerned Recovery Officer having jurisdiction in the case, another Recovery Officer to be nominated by the Head. An officer in the grade of Deputy General Manager or higher from the Office of the General Manager and Investor Assistance and Education Nominated by the Chief General Manager in charge of Investor Protection and Education Fund (IPEF).
The Informant Reward Committee shall make its recommendations to the competent authority on matters relating to the eligibility of informers for reward and determination of the amount of reward payable to informers.
SEBI said that the amount of reward given to the informer will be paid from the Investor Protection and Education Fund.
The Securities and Exchange Board of India (SEBI) said the new guidelines have come into effect from March 8.
According to Sebi’s annual report for 2021-22, the markets regulator set aside Rs 67,228 crore of outstanding dues at the end of March 2022 under the “difficult to recover” (DTR) category.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
