SEBI to probe alleged data leaks via social media

The Securities and Exchange Board of India is “seriously” looking into the complaints about some individuals allegedly circulating key financial details and other market moving information about listed companies on social media groups before they are made officially public.

The SEBI Chairman, Ajay Tyagi, today said that the regulator has come to know of instances wherein price-sensitive financial data of reputed companies was leaked before the earnings were formally made public.

“We are taking that (WhatsApp leaks) very seriously. How come such messages about r

eputed listed companies are leaked quite close to the financial results is something we are not going to sit quietly on,” Tyagi told reporters on the sidelines of an investment banking summit here.

As reported by PTI earlier, SEBI and the exchanges are examining the trade details of over two dozen stocks as part of a probe into the alleged leak of key financial details through social media platform WhatsApp. Officials had told PTI earlier that the companies include several blue-chips.

Besides, SEBI is also considering seeking call data records (CDRs) of all the persons involved in circulating such key financial details and other price-sensitive information about publicly traded companies on social media groups before they are made public.

The regulator has powers to seek the call data records, excluding the exact content of the communication, from telecom service providers. SEBI will also seek clarification from brokerages and listed firms if such individuals were found to be associated with them.