How to become a crorepati? This Sebi reward is eye-ball grabbing; see if you can benefit

To curb illegal and fake businesses in the country, the government is constantly taking tough steps and the effect of the same is also visible. The government is seeking help from the common man to prevent forgery or illegal activities now. The best part is that govt will also give a good amount to people in exchange for this help. Securities and Exchange Board of India (SEBI) has taken some similar steps to prevent forgery. SEBI has announced a reward of Rs 1 crore on the information of those who commit frauds like insider trading.

Also the identity of an individual, who shares this information with SEBI will be kept secret. Other facilities including hotline will also be provided to the people for providing/sharing information. Apart from this, SEBI will insure every kind of help to an individual helping it. 

What is insider trading?

The company dealing in stock market sometimes trade, on the basis of fake information or by not providing correct information about itself to other traders. This is considered as an illegal activity or a cheating with common man. This type of trading is called insider trading.

SEBI keeps taking strict actions to ban such businesses quite often. It is imperative for SEBI to use laws and detect insider trading to maintain market confidence among investors.

While SEBI also takes help of a common man to find cases related to insider trading, in return of which they are also given cash rewards.

How and why to connect with SEBI?

In order to solve these cases and gather evidence to investigate, SEBI has to face a lot of difficulties and time. Due to which the process of investigation gets dragged. Now in order to resolve these cases faster, it has asked common man for help and also rewarding cash in exchange. 

SEBI has also prepared a draft to complete this entire procedure. It has made an improvement in the PIT regulation in which voluntary information declaration form (VIDF) is required to be given to those, who want to give information related to insider trading.

The person will need to mention all the correct information related to the insider trading case on the form. One will also need to mention the information source and other details. He/she will also need to mention that the information is not received from any employee working in SEBI or any other board. 

SEBI prepares a separate unit to investigate the matters related to insider trading. The unit will investigate the matter on the basis of information shared by the individual. The unit decides if the company has done any fraud and on the basis of same, the individual gets 10% of the total fraud amount up to a maximum limit of Rs 1 crore!