SEBI Cracks Down On Ex-IndusInd CEO Sumant Kathpalia, Four Others Over Insider Trading: Report
Last Updated:
SEBI has banned former IndusInd Bank CEO Sumant Kathpalia and four other officials from the securities market over insider trading allegations.
The Securities and Exchange Board of India (SEBI) on Wednesday barred former IndusInd Bank CEO Sumant Kathpalia, former deputy CEO and three other senior officials from participating in the securities markets over allegations of insider trading.
The interim order comes in the wake of a major accounting scandal that rocked the private sector lender earlier this year. In March, IndusInd Bank had disclosed that it suffered a hit of approximately ₹1,900 crore due to years of misreporting internal derivative trades. The bank said the issue had been traced back to incorrect internal accounting practices within its treasury department.
In a separate issue, the bank also reported that an internal audit of its microfinance portfolio revealed around ₹660 crore was wrongly recorded as interest income over three consecutive quarters. This misreporting further raised questions about the bank's internal controls and financial reporting practices.
The regulator has impounded Rs 19.78 crore collectively from the five individuals, according to an interim order passed by Sebi.
The other officials restrained by Sebi are Arun Khurana, Executive Director and Deputy CEO of the bank at the time of the alleged violation; Sushant Sourav, Head- Treasury Operations; Rohan Jathanna, Head- GMG Operations and Anil Marco Rao, Chief Administrative Officer (CAO)- Consumer Banking Operations.
These senior executives are accused of trading in IndusInd Bank shares while in possession of unpublished price-sensitive information (UPSI), a breach of insider trading regulations.
The case stems from a Master Direction issued by the Reserve Bank of India (RBI), which had a significant impact on IndusInd Bank's operations. The bank's internal team had evaluated the financial implications of the directive and possessed non-public information at the time.
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.
Accordingly, SEBI said: 'All the Noticees, viz. Noticee Nos. 1 to 5, are hereby restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, until further orders."
(with PTI inputs)
First Published:
May 28, 2025, 19:58 IST
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
32 minutes ago
- Indian Express
Not for public transport- Part 1: As rain lashes Pune, auto and cab fares bleed citizens dry
By Kavyaa Masurkar & Antara Kulkarni Since the start of the monsoon, commuters in Pune have been grappling with the dual challenge of uncooperative auto rickshaw drivers and soaring fares on app-based platforms. With many drivers either refusing to ply or demanding extra charge and cab aggregators quoting fares significantly higher than meter rates, passengers are left unsure of what a fair fare is and how much they need to pay.. 'It took almost an hour just to book an auto from Pimpri Chinchwad to Lohegaon. When I finally succeeded, the app showed Rs 715 for the ride,' said Trisha Dasgupta, a PR professional. She added, 'It's worrying how expensive and difficult travel has become in Pune. If we have to spend so much and wait so long, how will middle-class people manage? Either we need a personal vehicle or end up spending excessively on rickshaws and cabs.' Sai Bhandarkar, a second-year student at BJ Medical College, shared similar concerns. 'Cab and auto rates vary a lot, especially during the rainy season,' she said. 'Most of the time, we're expected to tip the driver up to 30% of the displayed fare just to get a confirmed ride. Also, if you check the same route more than three times on the app, the price shoots up by around 15%.' Surge pricing has only added to the chaos. With traffic delays, waterlogged roads, and increased demand during peak hours, commuters say that ride-hailing platforms are capitalising on the inconvenience. 'Especially when there's traffic and when many people are looking to book a ride, tend to increase their prices. It shouldn't be happening,' said Dhirendra Kulkarni, a presales professional. Meghna Menon, owner of Zenscrawl, a garment store in Koregaon Park, echoed similar feelings. 'Surge pricing for both autos and cabs has become a regular problem,' she said. 'With the metro network still incomplete, people like me don't have many options. The confusion between meter fares and app pricing only makes things worse. Commuting in Pune has become exhausting, and we're often left at the mercy of apps and drivers who take advantage of the situation.' A media professional talked about how an Uber driver duped her by asking for extra fare for putting on the AC in her cab. 'He said the ruling had just come the evening earlier and showed an old video to convince me. As there were so many new regulations coming up with aggregator vehicles. I believed him and paid an extra Rs 100, only to realise later that I had been duped. Despite raising a complaint, there was no follow-up or refund of the amount. This is what these services have come to.' At present, Uber autorickshaws in Pune ply by meter leaving many passengers already complaining about the higher-than-usual Bhowmick, a sales professional, said that if autos are plying by meters, the concept of surge pricing should not apply in Pune. 'The concept of surge pricing was meant to compensate for the demand – but that should have been there to compensate for the discounted first prices. So why should they be around now,' he said. Traveling in Pune during monsoon has always troublesome but with autorickshaws and cabs hiking their fares, it has become costlier too.
Time of India
38 minutes ago
- Time of India
Two persons arrested for Rs 10L travel voucher fraud
Rourkela: Cyber police arrested two employees of a local IT-enabled services company on Friday night for allegedly defrauding their German client of around Rs 10 lakh through unauthorised manipulation of travel vouchers. They have been identified as Goutam Kumar Marndi (23) and Pitamber Hembram (24), both residents of Sector-19 here. The accused, whose employer provided customer support services to the German firm, allegedly created unauthorised tickets using travel vouchers meant for compensating customers with cancelled bookings. "The accused exploited their legitimate access to German company's online portal to create unauthorized tickets, which they sold at 40% discount through WhatsApp and Telegram channels," said Serofina Xess, IIC, Cyber police station, Rourkela. Investigation revealed that Marndi and Hembram collaborated with external parties to sell these discounted tickets, causing significant financial loss to German company, which operates in over 43 countries. The fraud came to light on May 2, 2025, when the company discovered unauthorised leakage and misuse of these voucher codes. Police found multiple WhatsApp accounts linked to the fraud on the accused's mobile phones.
Time of India
38 minutes ago
- Time of India
CBI nabs Dimapur bank ex-manager, proprietor of pvt firm for ‘graft'
Dimapur: The CBI has arrested a former senior manager of Punjab National Bank (PNB), Dimapur branch, from Guwahati and the proprietor of a Dimapur-based private firm from Dimapur for their alleged involvement in a bribery case. The former PNB senior manager has been identified as Seiminthang Singson and the proprietor of M/s Century Enterprises, Dhobinala, Dimapur, as Sanjit Chandra Dey. On June 4, the CBI registered a case against the two on the allegations that Singson took undue advantage of Rs 1 lakh in his bank account from the bank account of Dey for allowing extension of cash credit limit of Rs 20 lakh to the latter, even though his firm was not in right financial health. Searches were conducted in official and residential premises of both the accused at five locations in Dimapur and two locations in Guwahati on Friday and Saturday, leading to the recovery of incriminating documents and articles, a CBI release said on Saturday. It said Singson took undue advantage of a total of Rs 1.69 lakh from Dey, as per searches and seizure so far. Besides, an invoice of a total of Rs 2,06,200, relating to the purchase of electric/electronics items, were also seized from the office premises of Dey. These items were purchased by Dey in the name of Singson, the release said Some of the items found at the residential premises of Singson in Dimapur and Guwahati have been seized for investigation, the CBI said.
