Sebi yesterday ordered Bata India to conduct an internal probe into the alleged leakage of unpublished price sensitive information.
Footwear brand Bata India today said it has provided the relevant details sought by Sebi with regard to leakage of price sensitive information related to the firm’s quarterly financial results ahead of official release.
Sebi yesterday ordered Bata India to conduct an internal probe into the alleged leakage of unpublished price sensitive information relating to its financial results for the quarter ended December 31, 2015 and file the inquiry report.
Reacting to the development, the company said it will investigate the incident thoroughly to identify and address process gaps, if any, and fix accountability.
“The company… provided the relevant details sought by Sebi and the chronology of events leading up to the formal announcement of the financial results for the quarter ended December 31, 2015, which have also been set out in the order,” Bata India said in a stock exchange filing.
As per the Sebi order, Bata India has to complete the inquiry within three months and file a report within seven days thereafter.
The regulator said the financial figures of the firm pertaining to the October-December quarter 2015 were matching with those that were in circulation prior to official announcement.
“While the company has robust policies and processes to manage unpublished price sensitive information, we will investigate this incident thoroughly to identify and address process gaps, if any, and fix accountability,” the company said.
While Sebi said the source of the leakage of UPSI cannot be ascertained, it can prima facie be inferred that UPSI relating to financials of Bata India was leaked.
“Such leakage is prima facie attributable to the inadequacy of the processes/ controls/ systems that Bata India as a listed company had put in place,” Sebi said.
After Axis Bank, HDFC Bank and Tata Motors, Bata India is the fourth company related to whom the regulator has passed an order in the high-profile case of leakage of sensitive financial details prior to formal announcement of quarterly results.
Sebi had launched a probe in November after media reports surfaced with respect to circulation of unpublished price sensitive information(UPSI) in various private WhatsApp groups about certain companies, including several bluechip firms, ahead of their official announcements.
