The board which met in Bangalore asked Sebi to consider provisions for compensating victims of insider trading offences and reject such cases for any kind of settlement under the consent mechanism.
The board proposed that the Sebi should encourage an effective whistleblower framework in securities market by ensuring adequate legal protection of whistle blowers.
Sebi had earlier this year proposed that the companies should set up a board committee for framing and overseeing their whistleblower policies.
In the US, if a tipoff results in monetary sanctions of more than $1 million, individuals concerned can get 10-30 per cent of the sanctions collected.
After deliberating on global best practices and lessons for India with regard to insider trading, the board observed that Sebi has put in place a comparable framework, Sebi said in a statement.
IAB suggested that Sebi should publicise major insider trading cases in a separate section on Sebi website for easier access, may have provisions to compensate victims, if any, of insider trading offences.