Latest news with #UnpublishedPriceSensitiveInformation
India Today
7 days ago
- Business
- India Today
Explained: Why IndusInd Bank shares are in focus today
Shares of IndusInd Bank Ltd are under the spotlight on Thursday after the Securities and Exchange Board of India's (Sebi) investigation revealed that top executives at the private lender were aware of discrepancies in its derivatives portfolio as early as December 2022, and yet chose to withhold this information from the public for over 15 to Sebi's interim order, this prolonged delay gave several senior officials the opportunity to exit their stock positions before the eventual disclosure in March 2025, which triggered a sharp 27% drop in the bank's shares in a single those reportedly privy to the issue were CEO Sumant Kathpalia and other key executives, who were engaged in discussions about irregularities in derivative booking and margining months before the information became public, Sebi's findings these early internal discussions, the bank only classified the matter as Unpublished Price Sensitive Information (UPSI) on March 4, 2025, just days before the public concluded that this delay violated regulatory norms and enabled insiders to offload shares, protecting themselves from heavy losses. The regulator has now launched an insider trading investigation into the delay in properly classifying and disclosing the information is central to Sebi's case. As part of its action, Sebi has barred five senior executives from accessing the securities market and frozen the profits earned from the alleged insider initiated a suo motu probe after IndusInd's stock plunged 27% on March 10, 2025, following the revelation of accounting discrepancies worth Rs 1,529 crore in the bank's derivatives then, IndusInd Bank shares have regained some ground, rising 32.92% from a 52-week low of Rs 605.40 reached on March 12. IndusInd Bank shares were trading 0.62% higher at Rs 809.75 on the Bombay Stock Exchange (BSE) at 9:42 am. The 32-page Sebi order outlined how five IndusInd Bank executives sold shares between December 4, 2023, and March 10, 2025 after discovering the irregularities but before informing the Kathpalia sold 1.25 lakh shares, avoiding a potential loss of Rs 5.2 crore, while another executive, Khurana, offloaded over 3.4 lakh shares, sidestepping a Rs 14.30 crore these developments, ICICI Securities downgraded IndusInd Bank Ltd from 'Hold' to 'Sell,' lowering its target price to Rs 650 from Rs 720, marking a 17% brokerage cited concerns over the bank's uncertain outlook, projecting it will underperform the industry with a modest 8% compound annual growth rate (CAGR) and weak profitability, forecasting a return on assets (RoA) of less than 1% for FY25 to FY27.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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Business Standard
19-05-2025
- Business
- Business Standard
Sebi orders Mehul Choksi to pay ₹2.1 crore for insider trading breach
India's market regulator, the Securities and Exchange Board of India (Sebi), has issued a notice to Mehul Choksi, asking him to pay ₹2.1 crore for violating insider trading rules related to Gitanjali Gems Ltd, according to a PTI report. Sebi warned that if the amount is not paid within 15 days, it will initiate proceedings to seize his properties and bank accounts. The notice, dated 15 May, includes a penalty of ₹1.5 crore and interest of ₹60 lakh. Sebi stated that if Choksi fails to comply, the recovery will be made by attaching and selling his movable and immovable assets. His bank accounts may also be frozen, and he could face arrest. This action follows Choksi's failure to pay a fine imposed in January 2022. The PNB scam Choksi, who was chairman, managing director, and promoter of Gitanjali Gems, is also the maternal uncle of Nirav Modi. Both men are accused of defrauding Punjab National Bank (PNB) of over ₹14,000 crore. They fled India after the scam came to light in early 2018. Choksi has been living in Antigua since 2018. Last year, he travelled to Belgium citing medical treatment. He was arrested there last month following an extradition request from Indian authorities. Nirav Modi was arrested by Scotland Yard in March 2019 and remains in custody in the UK. Insider trading case In its January 2022 order, Sebi found that Choksi had passed on confidential company information—classified as Unpublished Price Sensitive Information (UPSI)—to Rakesh Girdharlal Gajera. Gajera subsequently sold his 5.75 per cent stake in Gitanjali Gems in December 2017, just before news about fraudulent Letters of Undertaking (LoUs) became public. These LoUs were fraudulently issued for companies under the Gitanjali Group, including Gitanjali Gems Ltd. 'Noticee No. 1, Choksi, was found to have communicated UPSI to Noticee No. 2 (Gajera) without any underlying legal obligation or legitimate purpose,' Sebi said in its final order. Sebi concluded that both Choksi and Gajera violated the Prohibition of Insider Trading (PIT) regulations. This is not the first time Sebi has taken action against Choksi. In May 2023, the regulator issued a separate notice demanding ₹5.35 crore for alleged fraudulent trading in Gitanjali Gems shares. Another fraud case and non-bailable warrant Separately, earlier this month, a Mumbai court issued a non-bailable warrant against Choksi in a 2022 bank fraud case, where he and others are accused of defrauding a consortium of banks—Canara Bank and Bank of Maharashtra—of ₹55.27 crore. The Central Bureau of Investigation (CBI) registered a case in July 2022 after a complaint from a senior Canara Bank official. The case involves Bezel Jewellery (India) Private Limited, where Choksi and three others served as directors. They allegedly conducted fake transactions and defaulted on repayments, diverting and misusing funds.
The Hindu
21-04-2025
- Business
- The Hindu
SEBI extends PAN freeze to immediate kin of insider trading norm violators
The trading windows of immediate relatives of those involved in insider trading will also be closed, the Securities and Exchange Board of India (SEBI) said in a circular on Monday. In an earlier circular dated September 23, 2024, SEBI directed stock exchanges to develop a system to restrict trading by designated persons (DP) of listed companies. This would be done by stock exchanges by freezing the PAN of DPs. DP refers to anybody who might be in possession of Unpublished Price Sensitive Information (UPSI). This was put in place by SEBI to 'ease compliance and prevent inadvertent non-compliances of provisions of PIT Regulations,' the circular stated. The markets watchdog has now extended this to the immediate relatives of the DPs, as per its latest circular. 'Considering the effective implementation of the framework to DPs of listed companies and the consultations held with the Stock Exchanges and Depositories, the above framework is hereby extended to immediate relatives of DPs for listed companies,' SEBI said in its latest circular. The changes come a week after the regulator suspended Gensol Engineering and its promoters from trading in the markets after it found that funds borrowed for business purposes were misappropriated and faulty and fake disclosures about the loan default were made to credit rating agencies. The promoters were found to be trading in the stocks of Gensol through Wellray Solar, another related party of the company, SEBI found. Blu Smart, an EV ride hailing service was among the related parties of Gensol.
