SEBI announces reward mechanism for informants providing tips on defaulters

Market regulator SEBI has introduced a new system to recover fines from defaulters. Under this you can earn from home. In return you have to provide some information to SEBI.

If you inform SEBI about missing defaulters property, you can get a reward of up to Rs 20 lakh. SEBI has made rules for this and has told how the prize money will be paid to whom.

According to SEBI, the amount of interim reward to informers will not exceed two and a half percent of the reserve price of the property. However, in this phase, the prize money will not exceed five lakh rupees. At the same time, up to Rs.20 lakh in the last phase.

SEBI has assured that the identity of defaulters or informers of their assets will be kept confidential. Along with this, the regulator has also said that the reward amount will be paid only after the information given is found to be correct.

The reward amount will be given only to those who provide information about the defaulters from whom recovery is considered difficult. Recently, the government had given the information about the arrears in the parliament. The top 50 defaulters own Rs 92,570 crore from banks.

Banks cannot recover from such defaulters. All their efforts have failed. Apart from this, SEBI recently announced the list of 9 most wanted defaulters. SEBI is endeavoring to recover the penalty from such defaulters.

People from whom it is difficult to recover their debts are put in the list of defaulters. The number of such defaulters in SEBI's list is 515. That is, SEBI will offer a reward of up to Rs 20 lakh to those who share information about these 515 defaulters.

SEBI will constitute a committee involving General Manager, Head of Recovery and Refund Department and concerned recovery officers. According to the SEBI Annual Report 2021-22, SEBI set aside an amount of Rs 67,228 crore under the default to recover category at the end of March 2022.