Market regulator Securities and Exchange Board of India (SEBI) has come with a new plan to collect penalty dues from defaulters.
The SEBI has launched a program offering up to Rs 20 lakh to those who give tip off on assets and other information related to the defaulters. SEBI has released a list of 515 evaders. Information related to them are being awaited.
If information about assets of defaulters is disclosed, SEBI will provide reward in two stages. 2.5 percent of the dues collected from the evader or Rs.5 lakh, whichever is less, shall be paid in the first instance. In the final stage, 10 percent of the outstanding value or Rs.20 lakh, whichever is less, will be given.
According to the SEBI statement, if all their efforts to collect dues from the defaulters fail, then it would reaward those who provide reliable information regarding the assets of the defaulter. At the same time, SEBI said that the details of the informant and the amount of reward will be kept confidential.
SEBI has set up a committee to recommend the extent to which whistleblowers are entitled to reward. This reward will be paid from the Investors’ Safety and Awareness Fund. These guidelines came into effect from March 8.
According to the SEBI Annual Report 2021-22, SEBI has identified Rs 67,228 crore of arrears as at the end of March 2022 under the category of bad debts. SEBI hopes that the rewards scheme announcement will help in full collection of dues.