Tata Motors to probe leakage of price sensitive information

The Securities and Exchange Board of India (SEBI) on Tuesday directed Tata Motors to conduct an inquiry into the leakage of unpublished price sensitive information relating to financials prior to their official announcement in the stock exchanges.

The SEBI order comes after it probed the leakage of Tata Motors financial numbers for the quarter ended December 31, 2015 on Whatsapp groups ahead of its filing with the stock exchanges.

According to SEBI, the financial numbers of Tata Motors for the quarter ended December 31, 2015 was officially announced to the stock exchanges on February 11, 2016 at 15.16 hours.

But the financial numbers matching that of the results for the quarter ended on December 31, 2015 were in circulation on Whatapp group since 12.29 hours.

The SEBI had directed Tata Motors to conduct an internal inquiry into the leakage of unpublished price sensitive information relating to its financial results and take appropriate action against those responsible.

The market regulator said the scope of such inquiry shall include and not be limited to determination of the possible role of following persons in relation to the aforesaid leakage of unpublished price sensitive information:

a) Persons/members of committees involved in generation of the original data for the purpose of determination of key figures pertaining to financial figures.

b) Persons involved in the consolidation of the figures for the financial results.

c) Persons involved in the preparation of board notes and presentations.

d) Persons involved in dissemination of information relating to financial results in the public domain.

e) Any other persons who had access to the information.

The SEBI also directed Tata Motors to strengthen its processes/systems/controls forthwith to ensure that such leakage of unpublished price sensitive information did not recur.

--IANS

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