(The Gist of PIB) Vice President suggests corporates to encourage whistle

(THE GIST OF PIB) Vice President suggests corporates to encourage whistle


Vice President suggests corporates to encourage whistle

  • Whistleblowing is the act of drawing attention to an authority figure or public, to perceived wrongdoing, misconduct. Corruption, fraud unethical activity within public, private or third-sector organisations.
  • Whistleblowers often face reprisals from their employer, who may suffer reputational damage as a result of the whistle being blown, or from colleagues who may have been involved in the illicit activities.
  • Whistleblowers can blow the lid off corporate and financial scams, therefore they need laws for protection. For Example: Edward Snowden, a former CIA employee who leaked classified information to the public.

Mechanisms to protect whistleblowers in India:

  • Whistle Blowers Protection Act, 2014: It provides for protection of their identity and also has strict norms to prevent their victimization.
  • SEBI PIT (Prohibition of Insider Trading) Regulations to reward whistleblowers and other informants for sharing information about insider trading cases.
  • Insider trading refers to trading of securities while in possession of Unpublished Price Sensitive Information about particular securities.
  • Companies Act, 2013 makes it mandatory for entities listed on stock exchanges to set up an audit committee to investigate whistleblower complaints.



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Courtesy: PIB