Will work with Sebi to probe results leak on Whatsapp: Axis Bank

Sebi on Wednesday ordered Axis Bank to strengthen its systems and conduct an internal probe to fix responsibility in the Whatsapp leak case

Axis Bank on Wednesday said it will work with market regulator Sebi with regard to leakage of unpublished price sensitive information and take appropriate action.

In its first order in the WhatsApp leak case, regulator Sebi on Wednesday ordered Axis Bank to strengthen its systems and conduct an internal probe to fix responsibility as the initial investigation showed the leakage due to "inadequacy" of processes at the bank.

Axis Bank has to complete the inquiry within three months and file a report to Sebi within seven days thereafter, the regulator said, after it found that the company's results for the April-June 2017 quarter were "either identical or matched closely with the figures" that were in circulation on WhatsApp prior to an official announcement.

The bank has been working closely with Securities and Exchange Board of India (Sebi) during the course of preliminary examination conducted in the matter on leakage of unpublished price sensitive information (UPSI) of listed companies, including that of the bank, Axis Bank said in a late evening statement.

"The bank will work with Sebi and the best experts in the field to investigate the matter and will take action as appropriate" said Axis Bank executive director Rajesh Dahiya.

The bank adheres to highest norms of governance and reiterates its commitment to adequacy of processes, systems and controls, particularly to prevent unauthorised access to UPSI, it added.

Sebi began a probe last month after a media report surfaced with respect to circulation of UPSI in various private WhatsApp groups about certain companies, including Axis Bank, ahead of their official announcements.