Sebi panel favours tapping of calls to aid investigation

New Delhi, Aug. 9: Suggesting sweeping reforms, a high-level committee on Thursday recommended Sebi to seek powers to intercept calls to aid investigations and also grant immunity to whistleblowers blowing the lid off frauds and other violations.

The panel suggested a series of changes in rules on market frauds, insider trading, surveillance and investigations, while recommending mandatory whistle-blower policies at listed firms and a searchable list of all immediate relatives and persons living at the same address with those in possession of price-sensitive info.

Many recommendations assume significance in the wake of several high-profile cases being probed by Sebi and other agencies where relatives of senior executives, as also various employees, at listed companies have come under scanner. These cases include those related to ICICI Bank, Videocon as also a number of top blue-chip firms where sensitive financial information allegedly got leaked over WhatsApp before their formal announcements. The panel said such information should be readily available with the listed firns and market intermediaries to be provided to Sebi whenever asked, as also an electronic record of all persons with whom price sensitive information is shared.

Making the report public, Sebi said it has suggested that norms against frauds should also cover all market participants and their employees as well as agents of intermediaries. —