Whistle Blower Policy

Objective

The objective of ‘Whistle Blower Policy’ is to ensure highest ethical, moral and business standards in the course of functioning and to build a lasting and strong culture of Corporate Governance within the Nidhi. In terms of Policy, an internal mechanism is established for staff members to report to the management, concerns about unethical behaviour, actual or suspected fraud or violation of the Nidhi's Code of Conduct policy. The Policy is intended to encourage all employees of the Nidhi to report suspected or actual occurrence of illegal, unethical or inappropriate actions, behaviour or practices by staff members without fear of retribution. The employees can voice their concerns on irregularities, malpractices and other misdemeanors through this policy. It also provides necessary safeguard and protection to the employees who disclose the instances of unethical practices/ behaviour observed in the Nidhi.

The Whistle Blower Policy has been modified as per relevant Notifications of RBI, Section 177 of Companies Act, 2013 & relevant rules thereon and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and existing instructions of the Nidhi as well as Government of India/Central Vigilance Commission/RBI/SEBI in this matter issued from time to time, including but not limited to Circular NO. 02/03/2019 issued by the Central Vigilance Commission.

Whistle Blower

The Employees of the Nidhi making the disclosure under this policy. The Whistle Blower’s role is that of a reporting party. Whistle blowers are not investigators or finders of facts; neither can they determine the appropriate corrective or remedial action that may be warranted.

Whistle Blower

Branch Manager at Branch Offices for staff members posted in the respective Circles and General Manager at Central office for staff members posted at Central office, its establishments and other business groups. In case disclosure is against an official of the rank of GM and above, Chief General Manager in charge of FPMD will be the Designated Officer.

Subject

Branch / Employee– The specific branch and/or employee in respect of whom disclosure is being made.

Employees

All employees of the Nidhi, including officer and award staff members, as also those under contract service in the Nidhi.

Disclosure

Any communication, whether by letter/ email/ on designated portal or over telephone, relating to unethical practice or behaviour or violation of service rules, made in good faith by the Whistle Blower.

Reviewing Authority

Central office General Manager at Central office for all staff members posted at Central office/ its establishments/ Circles/ Other Business Groups. In cases, where this General Manager is the Designated Officer shall be the reviewing Authority. Upon receiving the remarks and recommendation, he may take a view on closure of the complaint or forward the same to the concerned department for initiation of necessary action under Service Rules/ Bipartite Settlement, as the case may be.

Appropriate Departmental Action

Departmental action as per the applicable service rules of the Employees/Officers.

Investigators

Mean any person(s) duly appointed/consulted by the Designated Official to conduct an investigation under this policy.

Coverage

All employees of the Nidhi posted at domestic branches/offices are covered under this policy. The Policy covers malpractices and events which have taken place/ suspected to have taken place in the Nidhi involving:

Corruption
Frauds
Misuse/ abuse of official position
Manipulation of data / documents
Any other act of an employee which affects the interest of the Nidhi

The details in the complaint should be specific and verifiable.

Reporting Mechanism

General Manager at Central office and Branch Managers in the Circles will arrange to circulate name, telephone number, and e-mail address of the Designated Officer(s) in the Nidhi/Circles to enable the staff members to register their complaints under Whistle Blower Policy. Any employee (officer / award) willing to disclose information may do so in any of the following manner.

In writing on prescribed format, duly addressed to the Designated Officer(s) in a sealed envelope specifically superscribed in capital letters “Disclosure under Whistle Blower Policy”.
The envelope containing the complaint to be sent to the related Designated Official i.e. General Manager, Central office or to Assistant General Manager of the respective Circles. Efforts should be made not to disclose the identity of Whistle Blower on the top of the envelope containing the disclosure. The whistle blower may submit his application directly to the Chairman of Audit Committee of Board (ACB) in exceptional or appropriate cases only.
Suitable proof of his identity / contact numbers / address so that additional information, if any, can be obtained. In case identity cannot be ensured, the complaints will be treated as anonymous/ pseudonymous complaints, and may not attract further action.
Complaints can also be sent to the designated e-mail ID created for the purpose from the official e-mail ID of the employee. The contact details / address of the Whistle Blower should however be provided. In case of absence/incorrectness of the same the complaints will be treated as anonymous/pseudonymous complaints and may not attract further action.
The information can be sent through nidhi’s portal.
Disclosures can also be made over a dedicated Telephone number. The Whistle Blower would however, be required to disclose his identity and furnish sufficient information for verifying his identity by the Designated Official. Additional information, as deemed necessary, will be sought for by the designated official attending the call.
The disclosure whether by letter / email/ telephone, should provide specific and verifiable information in respect of the “Subject – Branch / Employee”.

Confidentiality Mechanism of Whistle Blower

The complaints received under Whistle Blower will be opened by the addressee only.
Upon receipt of Complaint, the Designated Authority will enter the particulars of Complaint in the Register and allot a code number on all the pages of the complaint. The first page containing the whereabouts of Whistle Blower along with the envelope will be retained with the custody of Designated Authority. The subsequent pages containing the details of Whistle Blower case will be handed over to concerned desk official for investigation purpose. The Designated Officer will strive to ensure that identity of Whistle Blower is not disclosed. The register will be confidential and retained with the Designated Official.
The particulars of the Complaint will be recorded in the prescribed Register.

Protection to Whistle Blower

The Nidhi will protect the confidentiality of the complainants and their names / identity will not be disclosed except as statutorily required under law.
No adverse penal action shall be taken or recommended against an employee in retaliation to his disclosure in good faith of any unethical and improper practices or alleged wrongful conduct. It will be ensured that the Whistle Blower is not victimized for making the disclosure.
In case of victimization in such cases, serious view will be taken including departmental action on such persons victimizing the Whistle Blower.
Identity of the Whistle Blower will not be disclosed to the Investigating Official.
If any person is aggrieved by any action on the ground that he is being victimized due to the fact that he had filed a complaint or disclosure, he may file an application before the Reviewing Authority i.e. General Manager, Central office seeking redressal in the matter, wherein the Reviewing Authority may give suitable directions to the concerned person or the authority.
To protect the interest of the Whistle Blower for any adverse reporting in Annual Appraisal/Performance report, he/she may be given an option to request for a review of his/her Annual Report by the next higher Authority of the Reviewing Authority of his/her Report within three (03) months after the closure of the relevant financial year ending 31st March.

Disqualifications From Protection

Protection under the Policy would not mean protection from departmental action arising out of false or bogus disclosure made with malafide intention or complaints made to settle personal grievance.
Whistle Blowers, who make any disclosures, which have been subsequently found to be malafide or frivolous or malicious shall be liable to be prosecuted and appropriate disciplinary action will be taken against them under Service Rules/ bipartite settlements only when it is established that the Complaint has been made with intention of malice.
This policy does not protect an employee from an adverse action which occurs independent of his disclosure under this policy or for alleged wrongful conduct, poor job performance, any other disciplinary action, etc. unrelated to a disclosure made pursuant to this policy.

Mechanism For Action/Reporting on Such Disclosures

The designated official shall, on receipt of the complaint, arrange to verify the identity of the Whistle Blower.
Proper record will be kept of all disclosures received. The action taken against each disclosure will be also noted and put up to the Reviewing Authority within 7 days of receipt of complaint.
Only on being satisfied that the disclosure has verifiable information, necessary enquiry / investigation will be done with regard to the complaint. The Designated Official will also have the authority to seek the assistance / support from other departments/ offices to conduct enquiry / investigation. The process of investigation will be completed within 45 days of receipt of the Complaint.
The identity of the Whistle Blower will not be disclosed to the officials conducting the enquiry / investigation. In case additional information is required to be collected from the Whistle Blower, it will be through the Designated Official.
Any inquiry/ investigation conducted against any Subject shall not be construed by itself as an act of accusation and shall be carried out as a neutral fact finding process, without presumption of any guilt.
The inquiry/ investigation shall be conducted in a fair manner and provide adequate opportunity for hearing to the affected party and a written report of the findings should be prepared for submission.
A time frame of maximum 45 days will be permitted to complete the investigation / enquiry. In case the same cannot be completed within the stipulated period, interim report should be mandatorily submitted by the Investigating Officer, giving, inter- alia, the tentative date of completion.
Depending upon the nature of disclosure and its gravity, the Designated Official will take a view to take up investigation on a priority basis and fix shorter time frame for its completion.
In case the disclosure made does not have any specific & verifiable information, the Designated Official will be authorized not to take any action. This would be suitably recorded and placed before the Reviewing Authority.
In case the allegations made in the disclosure are substantiated, appropriate departmental action as per the provisions of service conditions in vogue will be taken against the employee (officer/award) concerned on whose part the lapses are observed.
The action taken against the subject/employee as stated in the above paragraph will be in addition to any other action or prosecution which may be initiated against said subject/employee under any statute or law in force.

Review of Status Report

Functioning of the Policy will be reviewed by the Reviewing Authority at quarterly basis.
The Designated Officer shall submit a status report to the Reviewing Authority and any other information relating to the disclosures received under the Whistle Blower Policy on quarterly basis. The status report would include the following:
1. The status of the disclosure received during the present and prior period and the action taken thereon.
2. The special areas which need focused attention.
3. The nature of disclosures made & their Circle wise distribution.

The Reviewing Authority, Chief General Manager in charge of FPMD, Corporate Centre shall submit consolidated status report of the nidhi, to the Audit Committee of the Board (ACB) on quarterly basis with action taken report.

Implementation of the Policy

The General Manager at Central office and the Branch Manager at Branch Offices will ensure that the revised Policy is known to all employees. A copy of the Policy shall be uploaded in the KMBF Nidhi LTD.

The Policy will be reviewed every year. If any change to this policy is warranted consequent upon any change in regulatory guidelines, such changes in the Policy will be approved by MD in-charge of MD for incorporation in the Policy and placed before the Central Board in the ensuing meeting for information.

Roles and Responsibilities

Designated Authority :{General Manager / AGM}

Encourage all employees of the Nidhi to report suspected or actual occurrence of illegal, unethical or inappropriate actions, behaviours or practices by staff members without fear of retribution. To circulate name, telephone number, e-mail address of the Designated Officer(s) in the Nidhi to enable the staff members to register their complaints under Whistle Blower Policy.
The Designated Authority will be the focal point to receive the complaint from Whistle Blower.
Ensure that the identity of Whistle Blower is not disclosed. It also provides necessary safeguard and protection to the employees who disclose the instances of unethical practices/ behaviour observed in the Nidhi.
Appoint/authorise any official to conduct an investigation under this Policy and submit the report to Designated Authority. implement the Policy and ensure that the Policy is known to all employees.
On the basis of investigation report, Designated Authority will forward the same to Reviewing Authority with his/her remark and recommendation. After investigation, if it is proved that the Whistle Blower’s allegations are false/made with malafide intention, the Whistle Blower will not be protected under the Whistle Blower policy. In such cases, the Designated Authority may recommend to the Reviewing Authority for taking a view on the actions that may be taken against the Whistle Blower.
The Designated Officer shall submit a status report on the prescribed format to the Reviewing Authority and any other information relating to the disclosures received under the Whistle Blower Policy on quarterly basis. 7. The Designated Authority will be responsible to

Reviewing Authority: General Manager

Functioning of the Policy will be reviewed by the Reviewing Authority on quarterly basis.
Upon receiving the investigation report along with Designated Authority’s remark and recommendation, Reviewing Authority may take a view on closure of the complaint or forward the same to the concerned department for initiation of disciplinary proceedings.
Upon receipt of the investigation report along with the remarks and recommendations of the Designated Authority, after scrutinising the recommendations for action against the Whistle Blower for false allegations/ complaint with malafide intention, the Reviewing Authority will make suitable recommendations to the Managing Director in charge of FPMD through General Manager to take a view on the actions that may be taken against Whistle Blower under Service Rules/ Bipartite Settlement or close the complaint.
If any person (Whistle Blower) is aggrieved by any action on the ground that he is being victimized due to the fact that he had filed a complaint or disclosure, he may file an application before the Reviewing Authority, seeking redressal in the matter, wherein the Reviewing Authority may give suitable directions to the concerned person or the authority.
The Reviewing Authority, General Manager, Central office shall submit consolidated status report of the nidhi, to the Audit committee of the Board (ACB) on quarterly basis, with Action Taken Report.

KUMBAKONAM

MUTUAL BENEFIT FUND NIDHI LTD

K.M.B.F Nidhi Limited

Central Office,

No.23 & 24, Dr. Besant Road,

Kumbakonam-612001.

0435 - 2420548