[authors: Vaish Associates]
Is there a law to protect whistleblowers? If so, which law?
There is no single comprehensive legislation in India that provides protection to whistleblowers. In 2014, there was an attempt to codify a statute, and accordingly, the Whistle Blowers Protection Act, 2014 ("Whistle Blower Act") was enacted to file whistleblower complaints against public servants regarding corruption, wilful misuse of power, or commission of criminal offense by public servants. However, to date, the provisions of the Whistle Blower Act have not yet been enforced by the Central Government of India.
Furthermore, there are a few other statues containing provisions and schemes launched by few government agencies to protect and reward the whistle blowers.
Are companies legally obliged to introduce a whistleblowing system?
Yes. (i) listed companies, (ii) companies that accept deposits from the public, and (iii) companies that have borrowed money from banks and public financial institutions in excess of INR 500 million ((i), (ii) & (iii) collectively referred to as "Covered Companies") as per the Companies Act, 2013 ("Companies Act") read with the Companies (Meetings of Board and its Powers) Rules, 2014 ("Companies Rules") and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (iv) Securities and Exchange Board of India ("SEBI") registered intermediaries like stock brokers, debenture trustee, custodians, asset...
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