SEBI, India’s market regulator, is seeking trading data brought to light by a Reuters investigation involving several prescient messages on major Indian companies that were posted on WhatsApp groups.
Prescient information such as quarterly results, net profits, revenues, and even bonus share issues were apparently being posted on WhatsApp groups exclusive to traders and market insiders. Some of the information were linked to companies which were part of the National Stock Exchange (NSE) index.
India’s insider trading rules, which were updated in 2015, now cover unpublished price-sensitive information which could impact the market significantly. SEBI Chairman Ajay Tyagi confirmed that the matter will be investigated.