BSE offers whistleblower platform

Participants can now provide anonymous feedback on possible market manipulation

Asia's oldest stock exchange has launched a platform where whistleblowers can provide information about any wrong-doing. They can do so without disclosing their identity through a link on the bourse's web page. 

"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 the note on the exchange's home page. 

A whistleblower is an individual who provides information on malpractices or evidence of illegal actions. The BSE's mechanism allows investors to report any suspicious activity. A similar platform is also available on the National Stock Exchange. 

In the BSE's new offering, there is also a toll-free number that whistleblowers can make use of. Experts in the field say that telephone numbers are preferred on account of its relative anonymity, while there is a fear that web-based information may be relatively easy to trace back to its source. 

Globally, there are whistleblowing programs in various securities markets. The United States Securities and Exchange Commission (SEC)’s whistleblowing mechanism has recieved responses from 55 foreign countries, and tip-offs have run into thousands. 

The Nigerian Stock Exchange also 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.