SEBI refrains from taking action on whistleblower complaints without identity disclosure

Markets regulator Securities and Exchange Board of India (SEBI) said that it will entertain only those whistleblower complaints, where an investor discloses his identity and provides supporting documents to substantiate an allegation.

SEBI said that it will not take any action on complaints, where it is not able to reach back to the complainants.

The statement comes in the backdrop of an individual who made several complaints against a market infrastructure institution (MII) wherein he made grave allegations over certain issues and demanded investigation by SEBI into each allegation. According to SEBI the allegations were made without any supporting documentary evidence and without disclosing the individual’s real identity. The name turned out to be fake, the address and phone number were non-existent and there was no response from the e-mail address.

The complainant, also purported to be whistle blower, shared his unsubstantiated allegations with news/media outlets some of which taking cognizance of his allegations printed articles without any evidence.

As per Whistle Blower Protection Act (Chapter II – Public Interest Disclosure), a whistleblower shall make a complaint, indicating his/her identity and accompanied by supporting documents.

SEBI website states that, “Since it has not been possible to reach the complainant, it is important to bring to notice of general public that SEBI can entertain complaints only if the concerned investor/complainant is reachable to substantiate any allegation and provide supporting documents. SEBI may not take any action on complaints where SEBI is unable to reach back to the complainant.”