SoftBank facing SEC inquiry over alleged Arora conflicts: sources

New York

US regulators are examining SoftBank Group Corp over allegations about Nikesh Arora's activities before he resigned as president last week, according to people familiar with the matter.

The Securities and Exchange Commission (SEC) office in Los Angeles is looking into whether Mr Arora had conflicts of interest or engaged in questionable behaviour as well as SoftBank's disclosures to investors, said the people, who asked not to be named because the matter isn't public. The opening of an SEC inquiry is typically a preliminary step and doesn't mean SoftBank or Mr Arora, neither of whom have been accused of wrongdoing, will ever face an enforcement action.

Mr Arora, 48, said on June 21 he would step down after a SoftBank investor group had called on the company's board to investigate the executive over his qualifications, compensation and potential conflicts of interest due to his role as an adviser at a private equity firm. After the investor complaints, a committee of independent directors at SoftBank cleared Mr Arora of any wrongdoing a day before his resignation. The company said his departure had nothing to…