These regulations outline the framework for individuals who provide information related to insider trading violations to the Securities and Exchange Board of India (SEBI), acting as informants. The regulations establish mechanisms to encourage individuals to come forward and report instances of insider trading. They include provisions for maintaining confidentiality and protecting informants from any adverse consequences for providing such information. The goal is to enhance the effectiveness of insider trading regulations by encouraging a culture of reporting and ensuring timely action against violators.

A Clearing House is involved in aggregating transactions over a trading period and netting the positions to determine the liabilities of members. In financial markets, a clearing house acts as an intermediary between buyers and sellers to facilitate the smooth settlement of trades. It becomes the counterparty to both the buyer and the seller, guaranteeing the fulfillment of the trade. The clearing house aggregates transactions, calculates the net position for each member, and ensures the settlement of obligations. This process helps manage counterparty risk and ensures the integrity and efficiency of the financial markets.

The Audit Committee of a listed company or other analogous body for an intermediary or fiduciary is required to review compliance with the provisions of the relevant regulations at least once in one financial year. This ensures that there is a periodic and systematic assessment of compliance with the regulations governing the entity’s operations, enhancing transparency and accountability.

Regulation 7H of the SEBI (Prohibition of Insider Trading) Regulations, 2015, specifies the requirements with respect to informants, particularly focusing on confidentiality. This regulation ensures that the identity of the informant and the information provided remain confidential to protect the informant from any potential adverse consequences.

Depository participants are entities that facilitate the interaction between investors and depositories in the securities market. They are required to be registered with SEBI (Securities and Exchange Board of India) through their respective depositories (National Securities Depository Limited or Central Depository Services Limited). This registration ensures that depository participants comply with regulatory requirements and maintain the necessary standards to operate in the securities market.

In the context of financial regulations and anti-money laundering measures, authorities often require the recording of certain transactions to monitor and prevent illicit financial activities. In this case, the correct threshold for recording single cash transactions is those exceeding Rs. 10 lakh. This helps in tracking large cash transactions and ensuring transparency in financial transactions.

Both the Principal Officer and the Money Laundering Control Officer typically have access to client identification data (CDD – Customer Due Diligence) information, transaction records, and other relevant information. These individuals play crucial roles in anti-money laundering (AML) and counter-terrorist financing (CTF) measures within organizations, ensuring compliance with regulations and the effective implementation of policies to prevent illicit financial activities.

This statement is false. A registrar to an issue cannot act as a registrar for any issue of securities if they are an associate of the body corporate issuing the securities. This restriction is in place to ensure independence and avoid potential conflicts of interest in the registration process of securities issued by a particular body corporate.

Key Result Areas (KRAs) are required to develop a monitoring mechanism through internal audit. Internal audit processes help organizations assess and enhance their internal controls, risk management, and overall operational efficiency. This ensures that the organization is meeting its objectives and complying with relevant regulations and standards. Internal audits are conducted by an organization’s internal audit team or department, providing an independent and objective evaluation of various aspects of the business.