WhatsApp has refused to share user-specific information, in relation to multiple instances of HDFC Bank's quarterly financial reports being circulated on the messaging app prior to official announcements from the bank, citing its privacy policy, reports Business Standard. Earlier, the Securities and Exchange Board of India (SEBI) had directed HDFC Bank to strengthen its system to prevent leakages of price-sensitive information, months after at least two instances of the bank’s quarterly financial results being circulated on WhatsApp were reported. The regulator had also asked HDFC to conduct an internal inquiry of the leakages and take action against the culprits. Following this, SEBI reportedly wrote to the Facebook-owned messaging app seeking information on the origin of messages containing unpublished price-sensitive information of companies, which is crucial for investigation. Last month, SEBI had extended its investigation of such WhatsApp leaks to 40 companies, including Jubilant Life Sciences, Coal India, Glenmark Pharmaceuticals, Century Textiles Industries, CESC, Cipla, LIC Housing Finance, Yes Bank, Zee Media Corporation, Maruti Suzuki India, JSW Steel, and Sun Pharmaceutical. SEBI had initially launched the probe in November 2017, and last month reportedly seized laptops of 34 dealers and brokerage analysts, in an attempt to determine the origin of the leaks. Note that WhatsApp is not mandated to share information with SEBI under current rules, and as we had pointed out earlier, the regulator may have difficultly building a case. Firstly, the messages on WhatsApp are end-to-end encrypted, and even parent company Facebook would be unable to read these messages. It would also be very difficult to…
