Grant of reward to informant

Who is an Informant? 

‘Informant’ means an individual who voluntarily furnishes original information to the board in accordance with these guidelines and as per the specified Form-A annexed here. 

‘Original Information’ means information about the asset of a defaulter whose name is published on the SEBI website where his liability is certified as ‘Difficult to Recover’ dues based on the parameters given in paragraph 3 of these Guidelines, that is:  

1. not known to the Board from any other source, except where the Informant is the original source of the information.  

1. (ii) is sufficiently specific and credible to identify and attach the asset of such defaulter. 
    

Applicability and Scope of the Regulations 

These Guidelines shall regulate the grant and payment of reward to an informant who provides Original Information about the asset of a defaulter and such information results in the collection of outstanding dues which could not be recovered despite all possible efforts and such dues were certified as ‘Difficult to Recover’ on any one of the following parameters:  

(I) In case the defaulter is an individual – 

(a) defaulter is alive but has no attachable assets  

(b) defaulter is not traceable  

(c) defaulter has become insolvent  

(d) defaulter has died leaving behind no assets 

(II) In case the defaulter is a company/ body corporate/ firm – 

1. An Indian entity- which is defunct and whose directors (if such directors are also defaulters along with company jointly or severally) have no attachable assets; 

1. A foreign entity-  

• which has no presence/ place of business/ management in India  
• who has no representative in India  
• who has no attachable assets in India.