SEBI zeroes in on 2 individuals in WhatsApp leak case

Market regulator SEBI has zeroed in on two individuals who may have knowledge of perpetrators in the case relating to leak and circulation of sensitive financial details of a few companies and banks via WhatsApp. The two were the first to receive those messages before they were forwarded to others, a source told BusinessLine.

The case has now been shifted to the internal investigations department of SEBI, from the surveillance team. .

The issue of earnings leak on exclusive WhatsApp chat group was first reported last year by a news agency with regard to quarterly results of Dr Reddy’s, Cipla, HDFC Bank, Tata Steel, Wipro and Bajaj Finance, among others. In all, financial results of 12 companies were said to have been leaked and circulated. SEBI took up investigation of this matter and raided 34 people and entities linked to a particular WhatsApp group known as ‘market chatters’.

“Now, the regulator has zeroed in on two entities who were the first recipients and circulated the information to others and an intense probe of these entities is being carried out. It is believed that someone from the companies is the perpetrator,” the source said. Internal investigations by two banks and a few companies revealed that some employees may have been aware of unpublished price sensitive information and leaked it before it was placed in public domain.

These firms and banks have submitted their internal probe reports to SEBI and action could be taken against their employees, including a CFO in one case. The probes revealed that in many cases the earnings details leaked were accurate to the last decimal.