Protection rules on cards: Whistleblowers to get 25% of BSEC penalties
Market insiders say that these rules to protect whistleblowers and provide incentives are being introduced for the first time in the capital market’s history.
The Bangladesh Securities and Exchange Commission (BSEC) has initiated the formulation of rules to ensure legal protection for whistleblowers, aiming to encourage greater disclosure of information about the capital market.
Market insiders say that these rules to protect whistleblowers and provide incentives are being introduced for the first time in the capital market's history.
In addition to providing protection, the draft rules propose that whistleblowers who provide information will receive 25% of the penalties as an incentive if the capital market regulator imposes fines on any capital market stakeholders.
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To formulate the rules, the regulator published draft rules namely "Capital Market Related Information Disclosure and Whistleblower Protection Rules, 2026" in its website and sought public opinions within two weeks, by 15 March.
The draft rules define a whistleblower as any person associated with the board of directors, an executive member, trustee board member, auditor, or lawyer of any market intermediary registered with the BSEC, or of any listed company, mutual fund, alternative investment fund, or special purpose vehicle (SPV).
Protection of whistleblowers
The draft rules state that if a whistleblower discloses information, their identity shall not be revealed without their consent, unless disclosure is required by law.
If the whistleblower is an employee, no disciplinary or punitive action shall be taken against them under these rules for providing such information.
This includes demotion, unfavorable transfer, forced retirement, dismissal, reprimand, discriminatory treatment, or any other action that could cause overall, legal, or financial harm.
Any information disclosed by a whistleblower shall not be used as evidence in any legal proceeding. A whistleblower shall not be compelled to testify in any case arising from the disclosed information, nor shall any question be permitted during proceedings that may reveal their identity.
If any book, document, or record submitted as evidence contains details that could identify the whistleblower, appropriate measures must be taken to ensure that such information remains confidential when presented before the court.
Incentives
The draft rules state that if any monetary penalty or fine is recovered based on information provided by a whistleblower, the appropriate authority may, at its discretion, award the whistleblower a financial incentive or honorarium.
The Commission will determine, through periodic orders, the conditions, amount, and procedures for granting such incentives. However, the reward will not exceed 25% of the realised fine and, in any case, will be capped at Tk10 crore.
