Sebi to Axis Bank: Strengthen systems to prevent any leak

ENS Economic Bureau, December 28, 2017

The Securities and Exchange Board of India (Sebi) Wednesday directed Axis Bank to strengthen its “processes/systems/controls” to ensure that unpublished price-sensitive information of the bank is not leaked through social media, including WhatsApp.
Sebi, in its order passed by whole-time member G Mahalingam has asked the bank to “conduct an internal inquiry into the leakage of unpublished price-sensitive information relating to its financial results and take appropriate action against those responsible” for it within the law. The regulator has directed the bank to complete its enquiry into the issue within three months and report to Sebi on its findings.
Sebi said that the source or origin of the leakage of unpublished price-sensitive data of the bank cannot be ascertained at this point.
The regulator has also outlined the scope of the probe to be initiated by the bank. It said the bank should investigate the role of “members of committees involved in generation of the original data for the purpose of determination of key figures pertaining to financial figures including GNPA, NNPA, NIM, slippage, write-off, CASA, persons involved in the consolidation of the figures for the financial results, people involved in the preparation of board notes and presentations, those involved in dissemination of information relating to financial results in the public domain and any other persons who had access to the information”.
The order pertaining to the Axis Bank was passed under section 11 and 11B of the Sebi Act after the regulator found that the financial figures pertaining to the quarterly results of the bank were “either identical or matched closely with the figures (except for slippage figure) that were in circulation prior to its official announcement” by the bank.
“Such resemblance of the information circulated in the WhatsApp groups with the actual financial results prima facie indicates that the financial figures of Axis Bank, were in circulation prior to official announcement / publication by Axis Bank. The same could not have been possible without leakage of information from the persons, who were privy to the information relating to financials prior to its official announcement,” said the Sebi order.

Link :
http://indianexpress.com/article/business/banking-and-finance/sebi-to-axis-bank-strengthen-systems-to-prevent-any-leak-5001758/

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