After Axis, HDFC Bank, Sebi asks Tata Motors to probe WhatsApp results leak

Soon after ordering Axis Bank and HDFC Bank to launch a probe into the recent leak of price-sensitive financial information on WhatsApp, capital market regulator Securities and Exchange Board of India (SEBI) has directed Tata Motors to investigate the results leak in a order issued on Tuesday. Prescient price-sensitive information including earnings results of a few listed companies was found floating over WhatsApp messages just ahead of company’s earnings results for December quarter last year. Reuters had then reported the leak of earnings results of these companies including HDFC Bank and Axis Bank in private WhatsApp chatrooms just ahead of their official release. Sebi has already issued similar orders to both HDFC Bank and Axis Bank. Sebi said its initial examination found that the financial results for the quarter ended December, which were leaked on WhatsApp, matched certain details about Tata Motors.

The company will thoroughly probe this lapse, that pertains to an incident in 2015, to identify and address process gaps and also to fix accountability, Tata Motors said. Not sure about the source of information leak, the leak may have occurred due to lack in controls of Tata Motors, Sebi had concluded prima facie.

Sebi has asked Tata Motors to prepare a report inside three months to identify the source of leak after conducting an inquiry into its systems. After the WhatsApp leak incident coming to light last year, Sebi opened an investigation that followed various raids on the homes of brokers and even confiscation of mobiles phones and laptops.

On 26 February, WhatsApp had confirmed that Sebi had directed it conduct a probe into the unpublished price-sensitive information (UPSI) leak case. Sebi had asked HDFC Bank to launch a probe in the case and said that such a leakage of information shows an inadequacy of controls and systems that HDFC Bank follows. Sebi had also asked the HDFC Bank to ensure such a leak of unpublished price-sensitive information doesn’t take place anytime in future. Capital market regulator on 27 December had asked Axis Bank to conduct a probe on those involved the preparation of board notes and presentations, with access to information related to the financial results in the public domain.

Securities and Exchange Board of India ( SEBI )