WhatsApp case: Sebi asks Tata Motors to conduct internal inquiry

The Securities and Exchange Board of India (Sebi), on Tuesday directed Tata Motors Limited to conduct an internal inquiry into the leakage of unpublished price-sensitive information related to its quarterly financial results through WhatsApp. Tata Motors is the third listed company after HDFC Bank and Axis Bank to be told to conduct an inquiry into leakage of sensitive financial details through social media platforms, prior to formal announcement of quarterly results. Sebi in its order said that prima facie it appears that the financial results of Tata Motors for quarter ended December 2015 were finalised on or before February 9, 2016, which was before circulation of WhatsApp message on February 11, 2016. Sebi said the financial figures pertaining to the quarterly results of Tata Motors matched with the figures that were in circulation prior to the official announcement by the company. “Such resemblance of the information circulated on WhatsApp with the actual financial results prima facie indicates that the financial figures of Tata Motors, were in circulation prior to official announcement/ publication by Tata Motors,” the order said. The market regulator has asked Tata Motors to conduct an internal inquiry into the leakage within three months to ascertain the possible role of any officials. Besides, the auto maker has been asked to strengthen its processes to ensure that such instances of leakage of unpublished price sensitive information do not recur in future.