MOSCOW, November 2 (RIA Novosti) - A boat carrying about 40 people has sunk in the Indian Ocean, off the Australian west coast, with at least 17 people rescued and 23 still missing, ABC reported on Monday.

The boat has sunk about 1,300 km (700 nautical miles) northwest of the Cocos Islands, the news service said.

Australian Maritime Safety Authority (AMSA) spokeswoman Rhianne Robson was quoted by ABC as saying the rescue operation is underway.

According to the news service, AMSA received a distress signal on Sunday morning with reports the boat had a hole in the bottom and was taking on water.

AMSA issued a broadcast for help, and merchant ship LNG Pioneer from the Bahamas responded, but when it arrived in the area, the boat had already sunk, ABC said.

"The LNG Pioneer is a large vessel and they are trying their best with life rafts and their life boat to recover those in the water," Rhianne Robson was quoted by the news service as saying.

People, who were on board the ship, might be asylum seekers, ABC said, adding there were grave fears for the safety of those missing because of the rough conditions and the length of time they had been in the water.

Australian authorities are coordinating the rescue effort, the news service said, adding a Defense Force P3-Orion patrol plane was sent to the scene.