MUMBAI: HDFC Bank is investigating whether two executives shared unpublished price sensitive information (UPSI) with outsiders in violation of Sebi regulations and the bank’s code of conduct. UPSI can include data on financial results, dividends, capital raising and the appointment of key managerial personnel. The probe comes as the bank prepares for a leadership change, with incoming MD & CEO Anup Bagchi set to take charge on Oct 27, a day after Sashidhar Jagdishan steps down.The bank confirmed that an internal probe was under way. “In line with our policies, a review is currently underway to gather and evaluate all relevant facts. To protect the integrity of the process and the privacy of all parties involved, we do not comment on active internal reviews,” the bank said.
The bank confirmed that an internal probe was under way.
Info leak: HDFC execs may face regulatory action
Employees can face regulatory action not only for sharing UPSI but also for trading in a company’s shares while in possession of such information. Sebi recently issued an administrative warning to Reliance Industries Ltd’ compliance officer after an investigation into trades between June and Aug 2024 found that two employees and an immediate relative had traded in the company’s shares while in possession of UPSI. The Securities Appellate Tribunal upheld Sebi’s insider trading penalties against a former employee of Nucleus Software who had shared advance information about the company’s “huge profits” with a relative.Bloomberg first reported the investigation into the alleged leaks. According to the report, the executives oversee key businesses and functions at HDFC Bank. The bank identified them during an internal investigation launched after some senior leaders grew concerned about possible information leaks, the report said, citing people familiar with the matter. The probe is continuing as the bank examines whether the information was misused, according to the report.
