Sebi bans IndusInd Bank's former CEO Sumant Kathpalia, 4 others fromsecurities mkt
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.
Also, the regulator has impounded Rs 19.78 crore collectively from the five individuals, according to an interim order passed by Sebi.
New Delhi, May 28 (PTI) Markets regulator Sebi on Wednesday barred former Chief Executive Officer of IndusInd Bank, Sumant Kathpalia, and four others from accessing the securities markets, in connection with an alleged case of insider trading in the bank's shares.
These senior executives are accused of trading in IndusInd Bank shares while in possession of unpublished price-sensitive information (UPSI), a breach of insider trading regulations.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.' PTI SP ANU ANU
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
19 minutes ago
- Hindustan Times
Mehul Choksi's bank accounts, shares attached by Sebi over ₹2.1 crore dues
Markets regulator Sebi has ordered the attachment of bank accounts and shares and mutual fund holdings of absconding diamantaire Mehul Choksi to recover dues totalling ₹2.1 crore in a case of violation of insider trading rules in the shares of Gitanjali Gems. The latest move followed a demand notice issued to Choksi on May 15, warning attachment of assets as well as bank accounts if he failed to make the payment within 15 days. The demand notice came after Choksi failed to pay the fine imposed by the Securities and Exchange Board of India (SEBI) in January 2022 in a case of violation of insider trading rules in the shares of Gitanjali Gems Ltd. Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than ₹14,000 crore. Both Choksi and Modi fled India after the PNB scam came to light in early 2018. In April, Choksi was arrested in Belgium following an extradition request by Indian probe agencies. He was located in Belgium last year when he went there for getting medical treatment. He had been staying in Antigua since 2018 after leaving India. Modi was arrested by the Scotland Yard Police in March 2019 and is currently in jail in that country. In an attachment notice dated June 4, Sebi said the pending dues of ₹2.1 crore include the initial fine of ₹1.5 crore and interest of ₹60 lakh. To recover the dues, Sebi asked all the banks, depositories -- CDSL and NSDL -- and mutual funds not to allow any debit from the accounts of Choksi. However, credits have been permitted. Further, Sebi has directed the banks to attach all accounts, including lockers, held by the defaulter. Initiating the recovery proceedings, Sebi said there is sufficient reason to believe that Choksi may dispose of the amounts in the bank accounts, mutual fund folios and securities in the demat accounts held with the depositories and "realisation of the amount due under the certificate would, in consequence, be delayed or obstructed". In its order passed in January 2022, the regulator imposed a penalty of ₹1.5 crore on Choksi and restrained him from the securities market for one year. Sebi had found that Choksi communicated unpublished price sensitive information to one Rakesh Girdharlal Gajera, who sold his entire shareholding of 5.75 per cent in Gitanjali Gems in December 2017 with the intention of avoiding loss ahead of any event which may lead to disclosure of fraudulent issuance of LoUs (letter of undertaking) to Gitanjali Group and magnitude in public domain. It was noted that fraudulent LoUs were issued on behalf of entities belonging to the Gitanjali Group, including GGL. "Noticee no. 1 (Choksi) was found to have communicated UPSI (unpublished price sensitive information) to Noticee no. 2 (Gajera) without any underlying legal obligation or any legitimate purpose," Sebi had said in its final order. Through such activities, the two persons had violated the provisions of the PIT (Prohibition of Insider Trading) rules. In May 2023, Sebi sent a notice to Choksi directing him to pay ₹5.35 crore in a case pertaining to fraudulent trading in the shares of Gitanjali Gems.
&w=3840&q=100)
Business Standard
20 minutes ago
- Business Standard
ED raids Dino Morea and others in Mithi river desilting scam case
The Enforcement Directorate on Friday conducted searches at the premises of actor Dino Morea and some others in Maharashtra apart from some locations in Kerala as part of a money laundering investigation linked to the Mithi river desilting "scam", official sources said. The fraud is alleged to have caused a Rs 65 crore loss to the Brihanmumbai Municipal Corporation (BMC). The raids are covering more than 15 premises located in Mumbai and Kochi. This includes the premises of Morea, his brother, contractors and some others, the sources said. The investigation is being conducted under the Prevention of Money Laundering Act (PMLA), they said. The ED case against certain officials of the BMC and some others stems from a Mumbai Police economic offences wing (EOW) FIR filed to probe alleged irregularities in desilting of the Mithi river that is alleged to have caused a Rs 65 crore loss to the civic body. Morea was questioned by the EOW in this case few days back. The EOW registered a case against 13 persons, including civic officials and contractors, for their alleged involvement in the scam. The river flows through the city and drains into the Arabian is alleged that tenders for renting specialised dredging equipment were manipulated to favour certain suppliers.
Business Standard
20 minutes ago
- Business Standard
Muthoot Finance jumps 18% in six days
Muthoot Finance rallied 6.75% to Rs 2,447.15, extending gains for the sixth consecutive trading session. Shares of Muthoot Finance surged 18.46% in six trading sessions from its recent closing low of Rs 2,065.85 on 29 May 2025. The stock hit a 52-week high of Rs 2,470.25 today. The counter has soared 121.74% from its 52-week low of Rs 1,665 hit on 23 July 2024. On the BSE, 1.17 lakh shares have been traded so far, compared with average daily volumes of 0.54 lakh shares in the past two weeks. The stock had outperformed the market over the past month, rising 8.95% as against the Sensex's 1.92% rise. The scrip had outperformed the market in the past three months, jumping 12.28% as against a 10.56% rise in Sensex. The counter had also outperformed the market in the past year, soaring 39.71% as against Sensex's 9.48% increase. On the technical front, the stock's daily RSI (relative strength index) stood at 70.551. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30. On the daily chart, the stock was trading above its 50-day, 100-day, and 200-day simple moving average (SMA), placed at 2,202.91, 2,205.82, and 2,093.38, respectively. These levels will act as crucial support zones in the near term. Muthoot Finance is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, education, and hospitality. It is India's largest gold loan-focused NBFC. The company's consolidated net profit surged 29.7% to Rs 1,477.68 crore on a 35.3% rise in total income to Rs 5,652.94 crore in Q4 FY25 over Q4 FY24.
