SEBI pulls up Axis Bank for data leakage

Axis Bank, India's third largest private bank, was directed by SEBI to investigate the leakage of unpublished price sensitive information of listed companies including the bank through the popular messaging platform, Whatsapp.

The bank has ensured the regulatory body that it will probe the matter internally and take all the appropriate actions to prevent unauthorized access to sensitive information.

The Securities & Exchange Board of India (SEBI) has asked the bank to conduct the inquiry within three months. This directive comes after the bank was linked to a source that leaked information using social media messaging platforms such as Whatsapp.

Earlier, SEBI had taken a serious stance on leakage of share price sensitive information to select groups through Whatsapp.  SEBI had conducted massive search and seizure operation against blue-chip firms. The regulator had deployed around 30 SEBI officials and 70 policemen for the operation in Mumbai. Many digital devices including laptops, mobile phones were seize from the suspected individuals. The regulator will probe the matter further by conducting foresic audit of the seized devices and other documents.