Stock regulator forms committee to draft whistleblower policy

FE Team | Published: February 21, 2024 23:12:03

FE REPORT
The Bangladesh Securities and Exchange Commission (BSEC) is planning to develop a whistleblower policy to encourage ethical and safe reporting of misconduct and illegal activities within the corporate sector.
Analysts have welcomed the initiative, saying it will help curb the rising number of corporate scams.
A six-member committee has already been formed by BSEC to prepare a report outlining the key elements of the new whistleblower policy.
While talking to The Financial Express, BSEC Spokesperson Mohammad Rezaul Karim said the policy will prioritise the protection of whistleblowers while ensuring a safe and ethical platform for reporting wrongdoing.
Whistleblower policies are essential tools for safeguarding individuals who report suspected illegal, unethical or improper activities.
Typically, such policies outline the types of issues that can be raised, the methods for raising them, the protections offered to whistleblowers and the response procedures of the authorities.
MA Baqui Khalily, a former professor of finance at the University of Dhaka, commended the initiative, underlining its potential to strengthen corporate governance and safeguard whistleblowers.
He, however, advocated for clearly defining who qualifies as a whistleblower and outlining detailed protection mechanisms.
"The most important element is a highly detailed protection mechanism. In Bangladesh, protecting whistleblower identities is particularly challenging, as corporations often discover and dismiss whistleblowers." Mr Khalily told the FE.
According to him, the policy is unlikely to be effective in Bangladesh without a robust safeguard mechanism.
Besides, he stressed establishing a system for punishing those who deliberately provide false information.
The BSEC committee, led by BSEC Director Abul Kalam Azad, includes additional directors Sheikh Mohammad Lutful Kabir, Mohammed Siddiqur Rahman and Md Nazrul Islam, along with Deputy Director Ziaur Rahman and Assistant Director (legal service) Md Tauhidul Islam Saddam.
It is expected to submit the report within 15 days.
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