#LeadStoryOnET | Sebi bars ex-IndusInd CEO, others for alleged insider trading https://t.co/z9Wh5Ssgx5
Insider Trading Sebi says ex-CEO, others sold IndusInd Bank shares before derivative losses went public https://t.co/z9Wh5Ssgx5
SEBI bans former IndusInd Bank CEO Sumant Kathpalia, 4 others from securities market https://t.co/eZZtEcDiQn
The Securities and Exchange Board of India (SEBI) has barred former IndusInd Bank CEO Sumant Kathpalia, former Deputy CEO Arun Khurana, Sushant Sourav, Rohan Jathanna, and Anil Marco Rao from accessing the securities markets over allegations of insider trading. SEBI's investigation found that these individuals sold IndusInd Bank shares while in possession of unpublished price-sensitive information related to discrepancies in the bank's derivative portfolio. The management became aware of these discrepancies in September 2023, with internal emails exchanged in November 2023, but the information was not disclosed to the public until March 10, 2025. The financial impact of the derivative discrepancies was reported as Rs 1,749.98 crore for the September 2023 quarter, and the bank later disclosed a total derivative loss of approximately Rs 1,900 crore. An additional misreporting of Rs 660 crore in the microfinance portfolio was also identified. During the unpublished price-sensitive information period, Arun Khurana sold 3,48,500 shares, Sumant Kathpalia sold 1,25,000 shares, Sushant Sourav sold 2,065 shares, Rohan Jathanna sold 2,000 shares, and Anil Marco Rao sold 1,000 shares. The total loss avoided by these trades was 27.165%, amounting to Rs 19.78 crore, which SEBI has impounded and frozen in related accounts. Following the public disclosure, IndusInd Bank's share price dropped by 27.165%, from Rs 900.60 to Rs 655.95 in a single day. The SEBI interim order restrains the five individuals from buying, selling, or dealing in securities until further notice and requires them to submit a detailed account of their financial and asset holdings within 15 days. SEBI's investigation is ongoing, including examination of potential disclosure violations and other suspects.
