News: Employees under scrutiny for earning data leak

Culture

Employees under scrutiny for earning data leak

Senior and junior level employees are under scrutiny for releasing the quarterly results on WhatsApp before it's official announcement.
Employees under scrutiny for earning data leak

In a recent development, internal investigations by two banks and more than half a dozen companies have revealed that some of the employees are likely to be involved in the unpublished price sensitive information (UPSI) leaked before the quarterly results of these organizations were publicly announced. 

Leading organizations have submitted their internal probe reports to the securities market regulator, Securities, and Exchange Board of India (SEBI). Following this, an action is likely to be taken against these employees in the coming weeks, said a report

The probes disclosed that in some of the cases exact earnings details were leaked and the employees received these details over chatting app WhatsApp. In one of the instances, the senior leadership of the company such as Chief Financial Officer was also involved in the leak. 

The companies have now informed SEBI that they are taking necessary measures to avoid such leaks in the future. 

The report suggests that junior level employees who are involved in preparing such documents are the primary source of leaking these data. It can be recalled that in June 2017, quarterly results of companies such as HDFC Bank, Axis Bank Tata Motors and Bata were released before the announcement. 

SEBI has so far asked the organizations mentioned above to initiate an internal inquiry to consolidate their security system. 

Apart from employees who are involved in the preparation of UPSI, some junior level employees who are in charge of administrative work such as photocopying the document or manage IT solutions are also engaged in these activities.  

SEBI also launched a probe in November 2017 after media reported circulation of UPSI in WhatsApp groups about some companies ahead of their official announcements. 

 

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Topics: Culture, Employee Engagement

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