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2d ago

SEBI Bars Ex-IndusInd Bank CEO and Four Executives Over Insider Trading

Regulators seized nearly ₹20 crore after concluding the executives sold stock based on unpublished data about a multi-billion rupee accounting gap

Sebi's investigation found that the five individuals executed trades before this sensitive information was made public, using their access to confidential insights for potential personal gain.
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Overview

  • SEBI’s interim order restrains former CEO Sumant Kathpalia, Deputy CEO Arun Khurana and three other senior officials from trading in securities over alleged insider trading violations.
  • The regulator has impounded ₹19.78 crore collectively to curb gains made on undisclosed price‐sensitive information.
  • Officials are accused of selling IndusInd Bank shares while aware of a roughly ₹1,960 crore derivatives discrepancy and microfinance misreporting.
  • SEBI found that bank management first knew of the accounting gaps by September 2024 but delayed public disclosure for about 15 months.
  • IndusInd Bank reported a ₹2,236 crore loss in Q4 FY25 following the scandal and its shares have fallen nearly 11% since the March revelation.