SEBI Cracks Down on Insider Trading at IndusInd Bank Amidst Derivatives Discrepancy

Markets regulator Sebi has barred five former senior executives of IndusInd Bank, including ex-CEO Sumant Kathpalia, for alleged insider trading linked to discrepancies in the bank's derivative portfolio. The regulator mentioned the financial impact was concealed from public view until March 2025, prompting a deep internal audit revealing irregularities.

Devdiscourse News Desk | New Delhi | Updated: 28-05-2025 21:13 IST | Created: 28-05-2025 21:13 IST

SEBI Cracks Down on Insider Trading at IndusInd Bank Amidst Derivatives Discrepancy — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

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In a significant regulatory move, the Securities and Exchange Board of India (Sebi) has barred five senior executives of IndusInd Bank from the securities market. This action follows allegations of insider trading related to discrepancies in the bank's derivative portfolio.

The restrained individuals include former CEO Sumant Kathpalia and former Deputy CEO Arun Khurana, among others. Collectively, they are accused of trading while possessing unpublished price-sensitive information (UPSI), a violation that also saw Rs 19.78 crore impounded.

The internal irregularities remained undisclosed until 2025, leading to serious financial implications for the bank and precipitating a comprehensive internal audit that uncovered extensive accounting issues.

(With inputs from agencies.)