| Log in
Photo Credit: Shah Junaid/VCCircle

SEBI to probe possible leak of company earnings on WhatsApp groups

17 November, 2017

India’s market regulator will investigate possible leaks of company earnings in social media chatrooms, its chief Ajay Tyagi said on Friday, following a Reuters report this week that revealed prescient messages being posted in private groups.

The Reuters investigation documented at least 12 cases of prescient messages about major Indian companies being posted in WhatsApp groups limited to traders.

“We will certainly investigate the issue. It is a work in progress,” Tyagi, Chairman of the Securities and Exchange Board of India (SEBI), told Reuters, when asked what action the regulator was considering.

India beefed up insider trading rules in early 2015, expanding what constitutes “unpublished price-sensitive information” to include “any information” that is not “generally available” and that could have a market impact.

SEBI also set up a panel in August headed by a former federal senior bureaucrat, T.K. Viswanathan, to suggest measures to improve market surveillance and help prevent possible insider trading and market manipulation.

Last year, SEBI proposed a ban on sharing trading tips and stock-specific recommendations through bulk messages, emails, blogs and social media such as WhatsApp, Twitter and Facebook, unless one is registered as an investment adviser.

The regulator said the general public was lured by the tips and their investment decisions were influenced by messages that solicit investments and promise unrealistic returns.

It has also cranked up its investor awareness drive to prevent the public from falling to scams and to boost retail investment in financial markets.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
WhatsApp groups leak results of seven Nifty companies ahead of earnings call

WhatsApp groups leak results of seven Nifty companies ahead of earnings call

Reuters 4 weeks ago
Three days before Dr. Reddy’s Laboratories Ltd announced quarterly results...
SEBI widens probe into investment scams via SMS, WhatsApp

SEBI widens probe into investment scams via SMS, WhatsApp

PTI 4 years ago
Capital market regulator Sebi has widened its probe into suspected investment...
Finance ministry official Ajay Tyagi takes over as SEBI chairman

Finance ministry official Ajay Tyagi takes over as SEBI chairman

Reuters 10 months ago
Finance ministry official Ajay Tyagi takes over as Securities and Exchange Board...
No Comments

SEBI to probe possible leak of company earnings on WhatsApp groups

Powered by WordPress.com VIP