The Securities and Exchange Board of India (Sebi) has asked Tata Motors Ltd to conduct an internal probe into the leak of price-sensitive information. It’s not the first entity tapped by Sebi; Axis Bank Ltd and HDFC Bank Ltd have been issued similar directions. Perhaps the most intriguing aspect of the entire affair is the role played by WhatsApp.
Insider trading is nothing new, of course. What’s different this time is that the information is alleged to have been circulated in WhatsApp groups. It has set up a clash between Sebi and WhatsApp, with potentially far-reaching implications.