New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following individuals is excluded from the

    definition of "employee" for the purpose of filing a Voluntary Information Disclosure Form under the SEBI (Prohibition of Insider Trading) Regulations?
    A A director with access to insider information Correct Answer Incorrect Answer
    B A regular employee who becomes aware of insider trading violations Correct Answer Incorrect Answer
    C A contractual employee involved in sensitive projects Correct Answer Incorrect Answer
    D A partner who may have knowledge of insider trading violations Correct Answer Incorrect Answer
    E An advocate who is bound by an agreement not to disclose Correct Answer Incorrect Answer

    Solution

    71 Regulation Protection against retaliation and victimisation: (1) Every person required to have a Code of Conduct under these regulations shall ensure that such a Code of Conduct  provides  for  suitable  protection  against any discharge, termination, demotion,  suspension, threats, harassment,  directly  or  indirectly or discrimination against any employee  who  files  a Voluntary Information  Disclosure Form, irrespective of  whether the information is considered or rejected by the  Board or he or she is eligible  for a Reward under these regulations, by reason of:(i)filing a Voluntary Information Disclosure Form under these regulations;(ii) testifying in, participating   in, or otherwise   assisting  or  aiding the Board in   any investigation, inquiry, audit, examination or proceeding instituted or about to be instituted for an  alleged violation of insider trading laws or in any manner aiding the enforcement action taken by the Board; or (iii)breaching  any  confidentiality agreement or provisions of  any terms and conditions of employment or engagement  solely to prevent any employee  from  cooperating  with  the Board in any manner.Explanation1-For the purpose of this Chapter, “employee” means any individual who during employment may become privy to  information relating to violation of insider  trading laws and files a Voluntary Information Disclosure Form under these regulations and is a director, partner, regular or contractual employee, but does not include an advocate.

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