 "BSE offers a platform to whistleblowers")
“For any concern related to market manipulation, market abuse, market irregularity, suspicious trading, insider, fraud, violation, rigging, etc, submit the information anonymously and confidentially,” said a note on the exchange’s home page.
A similar platform is available on the National Stock Exchange.
BSE’s new offering includes a toll-free number. Experts say telephone numbers are preferred due to more anonymity through this route, adding there is fear that tracking the source through web-based information might be relatively easy.
Globally, various securities markets have whistleblowing programmes. The US Securities and Exchange Commission (SEC)’s whistleblowing mechanism has received responses from 55 foreign countries, with tip-offs running into thousands. In 2013, India ranked fifth on a list of foreign countries providing the most tip-offs to the SEC. The SEC platform also offers a reward for successful prosecution.
The Nigerian Stock Exchange, too, has a whistleblower platform called ‘X-Whistle’.
The SEC platform also offers a reward for successful prosecution. India ranked fifth amongst the list of foreign countries providing the most tip-offs to the SEC in 2013.
FIVE THINGS TO KNOW ABOUT
BSE’S INITIATIVE:
Who is a whistleblower?
A whistleblower is someone who calls attention to wrongdoing. He can be an investor, an employee or any stakeholder with knowledge of malpractices.
What has the BSE done?
It has created a platform which can be used to provide information on such issues. The platform allows for anonymous tips. There is also a provision for a telephonic tip-off.
What are the actions it is targeting?
The malpractices it is targeting include market manipulation, market abuse, market irregularity, suspicious trading, insider, fraud.
Who else has a system in place?
Internationally, the US SEC has a similar system. The Nigerian Stock Exchange has ‘X-Whistle,' a similar platform, as does the National Stock Exchange in India.
How can you tip-off the exchange?
You can go to their homepage, where there is a link to the platform. You can also make use of a telephone number provided on the website.