Last Updated: March 09, 2023, 18:05 IST
The difficult-to-recover dues are those which couldn’t be recovered even after exhausting all of the modes of restoration.
The reward could also be granted in two phases — interim and remaining.
With an intention to recuperate fines from elusive offenders, capital markets regulator Sebi on Thursday launched a reward system for as much as Rs 20 lakh to informants for sharing details about the property of defaulters.
The reward could also be granted in two phases — interim and remaining.
While the interim reward quantity is not going to exceed two and a half per-cent of the reserve value of the asset relating to which ideas was supplied or Rs 5 lakh, whichever is much less and the ultimate reward quantity is not going to exceed 10 per cent of the dues recovered or Rs 20 lakh, whichever is much less.
Coming out with tips on grant of reward to an informant who gives credible details about the property of the defaulter underneath restoration proceedings, Sebi mentioned, “info and the id supplied by the informant or the reward paid to him shall be held in confidence.” As per Sebi, 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’.
The difficult-to-recover dues are the ones which could not be recovered even after exhausting all the modes of recovery.
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Also, the regulator issued a list of 515 defaulters, where information can be provided by any informant.
In addition, 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 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.
Sebi said that the amount of reward granted to the informant will be paid from the Investor Protection and Education Fund.
The new guidelines have become effective from March 8, the Securities and Exchange Board of India (Sebi) said.
According to Sebi’s annual report for 2021-22, the markets regulator segregated dues to the tune of Rs 67,228 crore under “difficult to recover” (DTR) class on the finish of March 2022.
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