In November 2017,
a story published by Reuters reported that there were private
WhatsApp groups where financial results of listed companies were
being circulated ahead of the formal announcements. Based on this
story, the SEBI investigated the matter and directions were issued
to these entities to: (i) strengthen their systems and controls;
(ii) conduct internal enquiries into the leakage of unpublished
price sensitive information (“UPSI”)
and take appropriate action against those found responsible; and
(iii) submit reports to the SEBI in this regard.
Further, pursuant to investigations, the SEBI issued a set of
orders in 2020, in which it imposed penalties on certain
individuals for forwarding WhatsApp messages with details of
companies' earnings that were shared ahead of formal
announcements. These individuals received such messages on WhatsApp
groups that they were a part of and forwarded such messages as they
had received them. The results belonged to
Bajaj
