Manager - Hr
Consultant In Legal, Hr, Ir, M&a, New
For More on that, Pls Click the following links,
M. Peer Mohamed Sardhar
3rd October 2007 From India, Coimbatore
Whilstle Blower Policy is a mandatory requirement for all those companies which are listed on Stock Exchanges in India as well as abroad especially USA, European Stock exchanges. In India, WB was formulated in the year 2004 by SEBI - Securities & Exchange Board of India (Sebi), which stipulates that all listed companies are required to formulate a policy that allows employees to report illegal activities by those in positions of authority in their companies without any threat of a backlash.
The ‘Whistle Blower Policy’ (WBP), is now mandatory as per clause 49 of the Listing Agreement, for all companies whose shares are traded on any of the recognised stock exchanges in the country. These include both fraudulent practises by the company or any of its officers. This is effective January 2005.
You might recall the case of one Manjunath who was murdered by some miscreants for blowing the whistle of some corrupt practices in a major contract. Thereafter, the then PM of India had to take cognizance of the WB.
For the companies which are not listed on SEs, they also have adopted this as a policy to bring in proper discipline, governance and confidence amongst all levels of employees. In listed companies, all instances of WB - misc to major are ta be investigated by a legal expert and his findings are discussed in the Audit Committee of the Board of Directors and such instances are mandatorily to be reported in the audited financial statements of the respective company.
Hope this is sufficient for you to know about WB
Regards & wish you all the best.
4th October 2007 From India, Mumbai