AXIS BANK TOLD TO CONDUCT INQUIRY ON LEAK

Markets regulator Sebi has directed Axis Bank to conduct an internal inquiry into the leakage of unpublished price sensitive information relating to its financial results through Whatsaap group and take appropriate action against those responsible for the same.

The bank has also been directed to strengthen its internal control and processes to ensure that such leakage of UPSI do not recur in future.

The regulator said that the scope of such internal investigation should cover the possible role of persons involved in the consolidation of the figures for the financial results, persons involved in the preparation of board notes and presentations, those involved in the dissemination of information relating to financial results and individuals or members of the committee involved in the generation of the original data.

Sebi noted that the messages circulated via WhatsApp almost matched with the quarterly results of Axis Bank for June 2017, which were published subsequently.

The actual results were announced at exchanges on July 25, 2017 at 4: 23 PM while the message was in circulation on July 25, 2017 since 9: 12 AM. “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,” Sebi said.

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