Indian regulator says Axis results leaked, orders lender to investigate
India`s market regulator ordered Axis Bank
The Securities and Exchange Board of India (SEBI) order comes after Reuters reported last month that Axis Bank was among 12 companies where messages about quarterly results or other key financial details had circulated through private WhatsApp chatrooms before their official release.
The information on Axis Bank, which included key metrics on bad loans and net interest margins, "were either identical or matched closely with the figures" except for one metric, the regulator said in the order, published on SEBI`s web site.
It concluded that this "could not have been possible without leakage of information from the persons who were privy to the information relating to financials prior to its official announcement."
Axis, India`s third-largest private lender by assets, was ordered to submit a report to SEBI on steps it had taken within three months.
Axis Bank said it would work with SEBI to investigate the matter and take action as needed.
"The bank adheres to the highest norms of governance and reiterates its commitment to adequacy of processes, systems and controls, particularly to prevent unauthorised access to unpublished price sensitive information," the lender said in a statement.
The Reuters report has sparked a broad SEBI investigation since last month, including raids on brokers` homes last week that resulted in the confiscation of laptops and mobile phones.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.