(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Insider trading refers to trading of securities while in possession of Unpublished Price Sensitive Information about particular securities.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.