Latest news with #Khurana
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Business Standard
7 days ago
- Business
- Business Standard
How Sebi fixed ₹20 cr disgorgement in IndusInd Bank insider trading case
The market regulator on Wednesday asked five senior IndusInd Bank officials, including former deputy CEO Arun Khurana and former CEO Sumant Kathpalia, to disgorge around ₹20 crore for alleged insider trading. Khurana has to disgorge ₹14.4 crore, Kathpalia ₹5.21 crore, and others amounts ranging from ₹4 lakh to ₹7 lakh. Here's how the Securities and Exchange Board of India (Sebi) arrived at these figures: IndusInd Bank on March 10 disclosed losses in its derivative portfolio, estimating an adverse impact of 2.35 per cent of its net worth of around ₹1,530 crore (as of December 2024). The bank's stock fell 27.2 per cent the next day: from ₹901 to ₹656. Sebi investigation Following the disclosure and stock crash, Sebi initiated a suo motu investigation to identify trades made with unpublished price-sensitive information (UPSI) related to the derivative losses. The regulator examined records from NSE, BSE, depositories, KPMG, and IndusInd Bank, focusing on the period from September 12, 2023 to March 10, 2025. Why September 2023? Sebi's probe revealed that following the Reserve Bank of India's Master Direction (Classification, Valuation and Operation of Investment Portfolio of Commercial Banks) on September 12, 2023, IndusInd formed an inter-departmental team by September 26 to address derivative accounting issues. At the team's first meeting on September 26, discrepancies in the accounting of derivative contracts were identified, prompting the bank to calculate unreported losses. Who traded before the crash? Also Read Sebi identified individuals who were aware of the derivative loss discussions and traded IndusInd shares during the UPSI period. On December 4, 2023, Khurana sold 348,500 shares to net ₹53 crore. Kathpalia sold 125,000 shares, earning ₹19.2 crore. The three other individuals sold smaller quantities around the same time. Sebi noted that none of these individuals had submitted a trading plan for FY24 or FY25, which would have indicated pre-planned sales unrelated to UPSI. Sebi, in a 32-page interim order, concluded that these individuals traded while aware of the UPSI, thereby avoiding significant losses. 'It would be naive to assume the noticees traded routinely while discussions on discrepancies with a substantial financial impact were ongoing,' said the order. Calculating disgorgement amount Sebi calculated the disgorgement based on losses avoided due to the 27.2 per cent stock price drop post-disclosure. Had the individuals sold their shares after the UPSI became public, their proceeds would have been 27.165 per cent lower, the regulator has held. Thus, Sebi multiplied the number of shares sold by each individual by this percentage to determine the loss avoided, which formed the disgorgement amount. Kathpalia's 125,000 shares sold for ₹19.2 crore and 27.165 per cent of it comes to ₹5.21 crore.
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Business Standard
7 days ago
- Business
- Business Standard
How Sebi fixed ₹20-cr disgorgement in IndusInd Bank insider trading case
The market regulator on Wednesday asked five senior IndusInd Bank officials, including former deputy CEO Arun Khurana and former CEO Sumant Kathpalia, to disgorge around ₹20 crore for alleged insider trading. Khurana has to disgorge ₹14.4 crore, Kathpalia ₹5.21 crore, and others amounts ranging from ₹4 lakh to ₹7 lakh. Here's how the Securities and Exchange Board of India (Sebi) arrived at these figures: IndusInd Bank on March 10 disclosed losses in its derivative portfolio, estimating an adverse impact of 2.35 per cent of its net worth of around ₹1,530 crore (as of December 2024). The bank's stock fell 27.2 per cent the next day: from ₹901 to ₹656. Sebi investigation Why September 2023? Sebi's probe revealed that following the Reserve Bank of India's Master Direction (Classification, Valuation and Operation of Investment Portfolio of Commercial Banks) on September 12, 2023, IndusInd formed an inter-departmental team by September 26 to address derivative accounting issues. At the team's first meeting on September 26, discrepancies in the accounting of derivative contracts were identified, prompting the bank to calculate unreported losses. Who traded before the crash? Sebi identified individuals who were aware of the derivative loss discussions and traded IndusInd shares during the UPSI period. On December 4, 2023, Khurana sold 348,500 shares to net ₹53 crore. Kathpalia sold 125,000 shares, earning ₹19.2 crore. The three other individuals sold smaller quantities around the same time. Sebi noted that none of these individuals had submitted a trading plan for FY24 or FY25, which would have indicated pre-planned sales unrelated to UPSI. Sebi, in a 32-page interim order, concluded that these individuals traded while aware of the UPSI, thereby avoiding significant losses. 'It would be naive to assume the noticees traded routinely while discussions on discrepancies with a substantial financial impact were ongoing,' said the order. Calculating disgorgement amount Sebi calculated the disgorgement based on losses avoided due to the 27.2 per cent stock price drop post-disclosure. Had the individuals sold their shares after the UPSI became public, their proceeds would have been 27.165 per cent lower, the regulator has held. Thus, Sebi multiplied the number of shares sold by each individual by this percentage to determine the loss avoided, which formed the disgorgement amount. Kathpalia's 125,000 shares sold for ₹19.2 crore and 27.165 per cent of it comes to ₹5.21 crore. The smaller amounts for the other three individuals were similarly calculated.
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Business Standard
28-05-2025
- Business
- Business Standard
Sebi bars IndusInd Bank's ex-CEO, 4 others from securities market
The Securities and Exchange Board of India (Sebi) on Wednesday directed the impounding of Rs 19.78 crore from five senior officials of IndusInd Bank, including former Managing Director and CEO Sumant Kathpalia and former Deputy CEO Arun Khurana, for alleged breach of insider trading rules. These officials, along with three others, have been restrained from dealing in securities, directly or indirectly, until further notice. In an ex-parte interim order, Sebi has directed Khurana to disgorge Rs 14.39 crore and Kathpalia Rs 5.2 crore. The disgorgement amounts are based on the total loss avoided by the officials by selling shares while in possession of discrepancies in the account balance of the bank's derivative portfolio. Sebi's probe revealed that Khurana sold 3.48 lakh shares, while Kathpalia sold 1.25 lakh shares, while in possession of unpublished price-sensitive information (UPSI). After the UPSI became public, IndusInd's share price fell by 27 per cent. Furthermore, Sebi is conducting a detailed examination into insider trading and disclosure violations involving other suspects, which is expected to be completed expeditiously. Stock exchanges confirmed that no trading plan was submitted by IndusInd officials for FY24 and FY25. A trading plan is a pre-decided execution of trades for insiders, even when they are in possession of UPSI. Sebi noted that the discrepancies were flagged by the CFO in November 2023. The regulator highlighted that a significant opportunity to remediate and report the discrepancies earlier than the 10 March disclosure was missed. The failure to disclose these discrepancies is also under examination. 'Indulging in insider trading activities while being an insider and in possession of UPSI tantamounts to committing fraud upon innocent investors and jeopardising their interest, who did not have access to the material information,' stated Kamlesh Varshney, Whole-Time Member, Sebi. Sebi clarified that it initiated an examination suo motu on 10 March and has not closed its investigation, contrary to claims in some reports. The bank had disclosed that discrepancies in the derivative portfolio's account balance had a significant impact of Rs 1,529 crore, or 2.35 per cent, of the bank's net worth as of December 2024. Although the disclosure was made in March, an email from KPMG following external validation showed a figure of Rs 2,093 crore as the negative impact due to discrepancies as of December 2023. Sebi's examination revealed that IndusInd was not only monitoring these discrepancies but also proposing to submit them to the Reserve Bank of India (RBI). 'Vide emails dated 16 December 2023, 6 March 2024 and 5 May 2024, figures of discrepancies—Rs 1,572 crore, Rs 1,776.49 crore and Rs 2,361.69 crore—for periods ending September 2023, December 2023 and March 2024 respectively were circulated among the employees of IndusInd,' notes the Sebi order.
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Business Standard
28-05-2025
- Business
- Business Standard
Sebi bars former IndusInd CEO, deputy CEO in insider trading matter
The Securities and Exchange Board of India (Sebi) on Wednesday directed the impounding of Rs 19.78 crore from five senior officials of IndusInd Bank, including former Managing Director and CEO Sumant Kathpalia and former Deputy CEO Arun Khurana, for alleged breach of insider trading rules. These officials, along with three others, have been restrained from dealing in securities, directly or indirectly, until further notice. In an ex-parte interim order, Sebi has directed Khurana to disgorge Rs 14.39 crore and Kathpalia Rs 5.2 crore. The disgorgement amounts are based on the total loss avoided by the officials by selling shares while in possession of discrepancies in the account balance of the bank's derivative portfolio. Sebi's probe revealed that Khurana sold 3.48 lakh shares, while Kathpalia sold 1.25 lakh shares, while in possession of unpublished price-sensitive information (UPSI). After the UPSI became public, IndusInd's share price fell by 27 per cent. Furthermore, Sebi is conducting a detailed examination into insider trading and disclosure violations involving other suspects, which is expected to be completed expeditiously. Stock exchanges confirmed that no trading plan was submitted by IndusInd officials for FY24 and FY25. A trading plan is a pre-decided execution of trades for insiders, even when they are in possession of UPSI. Sebi noted that the discrepancies were flagged by the CFO in November 2023. The regulator highlighted that a significant opportunity to remediate and report the discrepancies earlier than the 10 March disclosure was missed. The failure to disclose these discrepancies is also under examination. 'Indulging in insider trading activities while being an insider and in possession of UPSI tantamounts to committing fraud upon innocent investors and jeopardising their interest, who did not have access to the material information,' stated Kamlesh Varshney, Whole-Time Member, Sebi. Sebi clarified that it initiated an examination suo motu on 10 March and has not closed its investigation, contrary to claims in some reports. The bank had disclosed that discrepancies in the derivative portfolio's account balance had a significant impact of Rs 1,529 crore, or 2.35 per cent, of the bank's net worth as of December 2024. Although the disclosure was made in March, an email from KPMG following external validation showed a figure of Rs 2,093 crore as the negative impact due to discrepancies as of December 2023. Sebi's examination revealed that IndusInd was not only monitoring these discrepancies but also proposing to submit them to the Reserve Bank of India (RBI). 'Vide emails dated 16 December 2023, 6 March 2024 and 5 May 2024, figures of discrepancies—Rs 1,572 crore, Rs 1,776.49 crore and Rs 2,361.69 crore—for periods ending September 2023, December 2023 and March 2024 respectively were circulated among the employees of IndusInd,' notes the Sebi order.
Time of India
23-05-2025
- Business
- Time of India
Subscription-based grocery provider Otipy shuts shop; impacts 300 employees
Subscription-based grocery provider Otipy shut operations last week, impacting around 300 employees in addition to gig workers, including delivery partners , said people aware of the development. Founder and CEO Varun Khurana is understood to have told the company's employees about the decision last week at a townhall meeting. The WestBridge Capital-backed startup has reportedly withheld salary payments to employees as well as delayed payments to vendors. This development comes amid a downturn for grocery subscription services, which have struggled since the rise of quick commerce platforms. The rapid 10-minute delivery model has also impacted sales at traditional kirana stores. It raised around a total of $44 million in equity and debt, as per data intelligence platform Tracxn. Its last financing was a $2 million debt by Nuvama Asset Management. Khurana did not respond to text messages seeking comment. Live Events Founded in June 2020, the Delhi-NCR based business-to-business-to-consumer (B2B2C) startup was set up as a subsidiary of Khurana's agritech firm Crofarm India. It connected end consumers to farmers via a community of resellers who handled the last-mile delivery of fruits and vegetables operating in Mumbai and Delhi-NCR. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories As per Tracxn, the company generated a revenue of around Rs 164 crore in FY24, up from Rs 115 crore a year ago. The development was first reported by Inc42. Due to challenges in the grocery subscription model because of the rise in quick commerce, BBdaily, the subscription service by Tata Digital-backed firm BigBasket, which used to run as a separate app was merged into the main BigBasket app in September last year. However, direct-to-consumer (D2C) fresh foods brand Country Delight, which offers direct-to-home delivery of fresh food essentials like milk, ghee, paneer, fruits, and vegetables, continues to operate under a daily subscription model. Meanwhile, the quick commerce industry has grown to $ 7.1 billion in FY25 from $300 million in FY22, as per the Indus Valley 2025 report by venture capital firm Blume Ventures. Otipy is the latest among startups that have shut operations. Insurtech startup Kenko Health , upskilling and job finding platform Bluelearn , social media app Koo , artificial intelligence-led software startup Nintee and spiritual tech startup My Tirth India , sales software provider for product-led companies Toplyne have folded up over the past few months
