WhatsApp leak case: How SEBI's extensive probe may yield very little; here's why

WhatsApp leak case: How SEBI's extensive probe may yield very little; here's why

The Whatsapp leak case makes it clear that regardless of being widely disseminated, the data was still not available to the public until disclosed by the companies

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The widespread contagion of such information would not exonerate parties who were accessories to its very transmissionThe widespread contagion of such information would not exonerate parties who were accessories to its very transmission
Shruti Rajan
  • May 12, 2020,
  • Updated May 12, 2020 1:31 AM IST

Market conduct regulations need to be expansive enough to take cognizance of a broad spectrum of human behaviour that can assail market integrity.

The DNA of these laws is principle-based and allows regulators and courts to apply law to facts, ascertain culpability and accordingly, bring parties to book. Recent insider trading cases are fascinating examples of such nuanced applications.

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In orders in the WhatsApp leak investigation, SEBI penalised parties for circulating information regarding the financial results of two listed companies, in advance of its publication.

One would recall that a few years ago, SEBI directed some listed companies, whose financial information was compromised, to launch an internal investigation and aid in locating the leak.

It also embarked on an extensive inquiry of its own but was unable to get to tipper zero who procured the information and then triggered its viral transmission. These orders penalise two specific individuals employed with financial intermediaries found to have disseminated information about Bajaj Auto and Ambuja Cements prior to publication.

Also Read:

Market conduct regulations need to be expansive enough to take cognizance of a broad spectrum of human behaviour that can assail market integrity.

The DNA of these laws is principle-based and allows regulators and courts to apply law to facts, ascertain culpability and accordingly, bring parties to book. Recent insider trading cases are fascinating examples of such nuanced applications.

Advertisement

In orders in the WhatsApp leak investigation, SEBI penalised parties for circulating information regarding the financial results of two listed companies, in advance of its publication.

One would recall that a few years ago, SEBI directed some listed companies, whose financial information was compromised, to launch an internal investigation and aid in locating the leak.

It also embarked on an extensive inquiry of its own but was unable to get to tipper zero who procured the information and then triggered its viral transmission. These orders penalise two specific individuals employed with financial intermediaries found to have disseminated information about Bajaj Auto and Ambuja Cements prior to publication.

Also Read:

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