“As a Managing Director, you carry the highest responsibility not only in financial operations to your organizations, but also in the moral regime. The director is at the peak of organizational regime. He was talking to the CEO of listed banks.
His remarks came up against Sebi’s background in May, in which former CEO of Industrial Bank Sumant Kathpalia, former Deputy CEO Arun Khurana and three other shareholders of the bank knew more than a year old shareholders trading in the security market.
“As a faithful, the bank is often occupied by unpublished price sensitive information (UPSI) related to other listed companies – the bank can directly affect the stock market if abused or leaked.”
He said that senior officials of the banks should be careful when the bank restricts a large loan to the listed company, because it gains financial information before it in the market.
Living events
Similarly, during debt restructuring or payment settlements, sensitive data is available to the bank’s liquidity status, and when participating in creditors’ proceedings for stressful assets, banks often learn about strategic corporate decisions before they are publicly declared.
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