As earnings season approaches, The Securities and Exchange Board of India (SEBI)’s ongoing investigation of ‘price-sensitive information’ leak on WhatsApp groups has led to laptops of 34 dealers and brokerage analysts being seized, the Economic Times reports. SEBI was trying to determine the source of the leaks.
It added that most WhatsApp groups have gone ‘silent’ and many members have left them.
SEBI’s probe on the trading data after it was revealed that financial results were circulated in social media groups before exchanges were informed. Many of the WhatsApp groups’ postings were termed ‘heard on the street (HOS). In this matter, the market regulator is investigating individuals like analysts, brokers, investment advisors and company officials for sharing unpublished price sensitive information (UPSI) –an information shared before disclosing the same to stock exchanges– a violation of regulator’s rule.
SEBI on insider trading
The regulator also released a consultation paper with the objective of specifying “uniform standards across all the intermediaries/persons engaged in providing investment advisory services irrespective of whether such activity is incidental to their primary activity or not and to address the gaps or overlaps in legal or regulatory standards.” More here.