IndusInd Bank's Crisis: Unveiling the Layers of Fraud

IndusInd Bank faces scrutiny due to accounting fraud, involving senior management. Sebi and RBI are investigating securities market violations. The crisis led to high-level resignations and ongoing forensic probes. The bank reported potential involvement of key management personnel to authorities, with an internal audit revealing breaches of internal controls.

The Securities and Exchange Board of India (Sebi) is investigating potential serious violations by senior IndusInd Bank officials amidst an ongoing accounting fraud scandal, Chairman Tuhin Kanta Pandey announced Thursday.

The Reserve Bank of India (RBI) is addressing certain issues, but Sebi is focusing on securities market breaches by the troubled bank's officials.

IndusInd Bank suspects employee involvement in fraud, directing the case to investigative bodies. The scandal, which affects the derivatives and microfinance portfolio, prompted internal audits and forensic probes, uncovering senior officials' involvement. The crisis has resulted in top-level resignations, including CEO Sumant Kathpalia.

(With inputs from agencies.)