SEBI bars five IndusInd Bank executives in insider trading case involving Rs 19.78 Crore
New Delhi [India], May 29 (ANI): The Securities and Exchange Board of India (SEBI) has passed an interim order barring five former and current senior executives of IndusInd Bank from participating in the securities market, alleging their involvement in insider trading that helped them collectively avoid losses worth nearly Rs 19.78 crore.
SEBI's ex-parte interim order, issued on May 28, names the bank officials including Arun Khurana (Executive Director and Deputy CEO), Sumant Kathpalia (Managing Director & CEO), Sushant Sourav (Head of Treasury Operations), Rohan Jathanna (Head of GMG Operations), and Anil Marco Rao (Chief Administrative Officer, Consumer Banking).
Some of these officials have already resigned from their roles at the bank.
SEBI said 'The bank accounts of Noticees are impounded to the extent of amount as mentioned in last column of Table 10 above, and Noticees are directed to open fixed deposit account(s) in their names so as to credit or deposit the aforesaid impounding amount with a lien marked in favour of SEBI and the amount kept therein shall not be released without permission from SEBI'.
SEBI launched a suo motu investigation after observing a sharp fall in IndusInd Bank's stock price following a disclosure made by the bank on March 10, 2025.
The bank revealed a discrepancy in its derivative portfolio accounting, stemming from changes mandated by the Reserve Bank of India's (RBI) Master Direction issued in September 2023.
SEBI, in an order, said 'Vide emails dated December 16, 2023, March 06, 2024 and May 05, 2024, figures of discrepancies Rs 1,572 crores, Rs 1,776.49 crores and Rs 2,361.69 crores for the period ending September 2023, December 2023 and March 2024, respectively, were circulated amongst the employees of IBL'
The regulator found that the bank's internal team had discovered the discrepancies as early as September 2023 and had internally communicated the financial impact to top executives, including those now under investigation, by December 2023.
Despite knowing the extent of the issue, the bank delayed public disclosure until March 2025.
During the period classified by SEBI as containing unpublished price-sensitive information (UPSI), from December 4, 2023, to March 10, 2025, the accused officials sold large volumes of IndusInd Bank shares.
SEBI's order shows that none of them bought shares during this time, indicating deliberate attempts to offload shares before the negative news became public and the stock price crashed.
On March 11, the day after the disclosure, IndusInd Bank shares dropped 27.17 per cent from Rs 900.60 to Rs 655.95.
Arun Khurana alone sold 3.48 lakh shares, avoiding losses of over Rs 14.39 crore. Kathpalia sold 1.25 lakh shares, evading losses of more than Rs 5.2 crore. The remaining three officials together avoided additional losses of nearly Rs 19 lakh.
In its interim order, SEBI has now frozen the officials' bank accounts to the extent of the avoided loss amounts.
The market regulator also directed them to park these amounts in fixed deposit accounts with a lien in favour of SEBI. It also prohibited them from buying or selling any securities until further orders.
SEBI also asked them to disclose details of their assets and financial holdings within 15 days. The regulator also clarified that its investigation is ongoing and further actions, including penalties, may follow. (ANI)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 minutes ago
- Time of India
Katra-Srinagar Vande Bharat train service to start operations from Saturday
The Vande Bharat train service between Katra and Srinagar in Jammu and Kashmir will start commercial operations from June 7, the Northern Railway said on Thursday. The train will be inaugurated by Prime Minister Narendra Modi on Friday. The Indian Railway Catering and Tourism Corporation ( IRCTC ) platform will start reflecting these trains for prospective passengers to book tickets after the inauguration, an official said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký According to Northern Railway, two Vande Bharat train sets will make four trips during the day between Katra and Srinagar. "It has two travelling classes Chair Car (CC) and Executive Class (EC) with tickets costing Rs 715 and Rs 1,320 respectively," an official from the Northern Railway said. Live Events The first train will commence from Katra at 8:10 am and reach Srinagar at 11:08 am. The same train will return in the afternoon from Srinagar at 2 PM and reach Katra at 4:58 pm. This train service will not be available on Tuesday. Another train will start from Katra at 2:55 pm and reach Srinagar at 5:53 pm. The same train will return from Srinagar the next day at 8 am. This service will not operate on Wednesday. "During its approximately 3-hour long journey, as of now the trains will only stop at Banihal but later on other stoppages will also be decided," an official said.
News18
13 minutes ago
- News18
Emiway Bantai Gets Death Threat After Releasing Sidhu Moosewala Song: 'I Will Kill Him'
Last Updated: Threat message to Emiway Bantai has been sent just a couple of days after he paid a musical tribute to the late singer Sidhu Moosewala. Rapper Muhammad Bilal Shaikh, popularly known as Emiway Bantai, has received death threats from a person who identified himself as Goldy Brar, a Canada-based close associate of gangster Lawrence Bishnoi, according to the police. A mobile number registered with Shaikh's company, Bantai Records, received the message on May 25. It also demanded a ransom of Rs 1 crore from the rapper. 'I am gangster Goldy Brar. Your singer has 24 hours. I want ₹1 crore or else I will kill him," the message stated. The message also mentioned the name of US-based Rohit Godara, another close associate of the gangster, officers said. The rapper, who lives in Nerul in Navi Mumbai, filed a complaint at the NRI Coastal police station through an employee of Bantai Records who spotted the message. More details about the case are awaited. However, it should be noted that a threat message to Emiway Bantai has been sent just a couple of days after he paid a musical tribute to the late singer Sidhu Moosewala. 'Sidhu Moosewala is more than an artist–he's a movement. His voice, his message, and his spirit continue to inspire me and so many others every single day. 'Tribute to Sidhu Moosewala' is my way of showing love and respect to someone who changed the game in his own way. Sidhu and I had actually spoken about collaborating. It was something we both wanted. This tribute is my way of making that dream a reality," Bantai said in a statement after releasing the song. Talking about Sidhu Moosewala, the singer was tragically murdered on May 29, 2022. He was shot dead by assailants in his car in Jawaharke village of Mansa district. Even though he was rushed to a hospital immediately, he succumbed to his injuries before receiving medical attention. Following his murder, his parents also lead a movement to seek justice for their son. A music video was also released prominently displaying a flag with the message 'Justice for Sidhu Moosewala". First Published: May 28, 2025, 09:25 IST
News18
17 minutes ago
- News18
Emiway Bantai Death Threat: 18-Year-Old Assam Boy Arrested, Further Probe Underway
Last Updated: On May 25, Emiway Bantai received death threats from a person who identified himself as Goldy Brar, a Canada-based close associate of gangster Lawrence Bishnoi. In a big development in rapper Emiway Bantai's death threat and extortion case, an 18-year-old boy has been arrested from Assam. According to reports, the boy has been identified as Arulv Rameshkumar Alohi. He was taken into custody from Assam after a joint operation by the Navi Mumbai Police based on digital tracking. The boy allegedly received instructions via social media to send a death threat and extortion demand to rapper Muhammad Bilal Shaikh, popularly known as Emiway Bantai, under the pretext of being linked to gangster Goldy Brar. Further investigation is now underway. What Was The Threat Message Sent To Emiway Bantai? On May 25, Emiway Bantai received death threats from a person who identified himself as Goldy Brar, a Canada-based close associate of gangster Lawrence Bishnoi. A mobile number registered with Shaikh's company, Bantai Records, received the message, demanding ransom of Rs 1 crore. 'I am gangster Goldy Brar. Your singer has 24 hours. I want ₹1 crore or else I will kill him," the message stated. It also mentioned the name of US-based Rohit Godara, another close associate of the gangster. The rapper, who lives in Nerul in Navi Mumbai, filed a complaint at the NRI Coastal police station through an employee of Bantai Records who spotted the message. However, it should be noted that a threat message to Emiway Bantai was sent just a couple of days after he paid a musical tribute to the late singer Sidhu Moosewala. 'Sidhu Moosewala is more than an artist–he's a movement. His voice, his message, and his spirit continue to inspire me and so many others every single day. 'Tribute to Sidhu Moosewala' is my way of showing love and respect to someone who changed the game in his own way. Sidhu and I had actually spoken about collaborating. It was something we both wanted. This tribute is my way of making that dream a reality," Bantai said in a statement after releasing the song. Sidhu Moosewala was tragically murdered on May 29, 2022. He was shot dead by assailants in his car in Jawaharke village of Mansa district. Even though he was rushed to a hospital immediately, he succumbed to his injuries before receiving medical attention. Following his murder, his parents also lead a movement to seek justice for their son. A music video was also released prominently displaying a flag with the message 'Justice for Sidhu Moosewala". First Published:
