SEBI said in the whitespace case: Information leaked from the companies, action will be taken

SEBI Chairman Ajay Tyagi said that in the matter of leakage of information in WhatsApp recently, it has become clear that these information has been leaked from the companies.

MUMBAI:  SEBI has issued a strong warning to the companies that leak important financial information. The regulator has warned that in this case the action will be taken against the auditors and all other responsible people and if necessary, the rules will be strict. After the meeting of the Board of Directors, SEBI Chairman Ajay Tyagi said that in the case of leakage of information in WhatsApp recently, it has been clarified that these information has been leaked from the companies.

One day earlier, the Securities and Exchange Board of India (Sebi) asked Axis Bank to strengthen its system and fix internal security by checking internal security. The regulator said that in the initial investigation, it has become clear that these information has leaked due to the weakness in the procedures in the bank. Tyagi said that there are more such companies and necessary action will be taken about this. He said that regulatory discriminatory business will amend the rules and strengthen them when needed.

When asked, the auditor is also aware and information is made before he becomes public, Tyagi said that if he is found guilty then action will be taken against him.

In the
initial investigations of the June quarter results of Axis Bank, the initial investigation revealed that the message that is being broadcasted on the Whatsap group is similar to the results of June quarter of Axis Bank. Axis Bank's quarterly announcement was announced on July 25 at 4:23 pm, while the message was running from 9:12 am on July 25.

Axis Bank will have to complete the investigation in three months.
SEBI said that Axis Bank will have to complete the investigation within three months and within seven days the report should be given to SEBI. The fact has been revealed in the investigation that the financial results of the Axis Bank of the quarter of April-June, 2017 are either very similar to or closely related to leaked information on whitesapp before the official announcement. SEBI started investigations in this regard after the media report last month.

There were reports of media that UPSIs of some companies were in the spread on various WhootSAP groups. However, these notifications have not been made public yet. Among them, Axis Bank was also involved. The regulator had also conducted raids and seizure action in different places including the premises of several market units. In this regard, SEBI has first instructed Axis Bank. In many other cases, instructions can be given as soon as possible.