SEBI could tighten norms on price-sensitive information of companies being leaked via WhatsApp: Report

The Securities and Exchange Board of India (SEBI) is considering tighter norms to curb leakage of price-sensitive information, according to a Mint report.

The proposed norms come after the financial results of some companies were leaked via WhatsApp.

SEBI is likely to ask companies to frame a policy on how they handle privileged information, conduct background checks on employees handling such information, and monitor share price movements before major events.

"These measures have been suggested by some members who are part of a panel on 'fair market conduct'. The panel is expected to submit a report next month", a source told Mint.

The panel, led by former Lok Sabha secretary and law secretary T K Viswanathan, was formed in August 2017. The panel's role is to suggest improvements to SEBI's norms, including regulations on insider trading, unfair practices and handling of price-sensitive information during takeovers.

The regulator has so far asked Axis Bank, HDFC Bank, Tata Motors and Bata India to conduct internal inquiries into the leak of their quarterly results.

SEBI is examining the possibility that WhatsApp leaks are a systemic issue, rather than a company-specific issue, the report pointed out.

"Close to 24 companies are under probe and in the four companies where the regulator has passed orders, the facts and circumstances are same that the leaked information mirrored the results. So, there is an assessment that it could be a systemic issue. This does not mean these companies will be let off the hook. " a source was quoted by Mint as saying.