The Securities and Exchange Board of India (SEBI) has passed an ex-parte interim order against five former senior executives of IndusInd Bank Limited (IBL) for alleged insider trading, directing them to deposit over ₹19.78 crore representing losses they avoided by selling shares while in possession of unpublished price sensitive information (UPSI).
The action follows SEBI’s suo motu probe into suspicious trades that coincided with IBL’s internal discovery of accounting discrepancies in its derivative portfolio—a development that led to a sharp fall in its stock price in March 2025.
Key individuals named
The order names the following individuals as “Noticees”:
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Arun Khurana (Executive Director and Deputy CEO)
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Sumant Kathpalia (MD & CEO)
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Sushant Sourav (Head – Treasury Operations)
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Rohan Jathanna (Head – GMG Operations)
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Anil Marco Rao (Chief Administrative Officer – Consumer Banking Operations)
As per SEBI, all five sold IndusInd Bank shares during the UPSI period—from December 4, 2023, to March 10, 2025—without making any corresponding purchases. The regulator found that these trades helped them avoid losses that would have occurred had the information been public.
UPSI related to ₹1,572 crore discrepancy
The core UPSI pertained to an internal review of derivative portfolio accounting after an RBI master direction in September 2023. By December 2023, internal estimates pegged the adverse financial impact at ₹1,572 crore. This information, though internally known and later validated by KPMG, was disclosed publicly only on March 10, 2025.
Following the announcement, IndusInd Bank’s share price fell by over 27% the next day—from ₹900.60 to ₹655.95—demonstrating the materiality of the information.
Breakdown of trades and gains
According to SEBI’s findings:
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Arun Khurana sold 3.48 lakh shares, avoiding a loss of ₹14.39 crore.
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Sumant Kathpalia sold 1.25 lakh shares, avoiding a loss of ₹5.20 crore.
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Sushant Sourav, Rohan Jathanna, and Anil Marco Rao avoided losses of ₹7.14 lakh, ₹6.87 lakh, and ₹3.94 lakh respectively.
SEBI’s interim directions
SEBI has:
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Impounded the equivalent avoided-loss amount from each individual’s bank accounts.
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Directed the funds be deposited in fixed deposits with liens in SEBI’s favour.
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Banned all five from buying, selling, or dealing in any securities until further orders.
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Frozen their demat and mutual fund accounts.
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Asked them to furnish complete details of their assets and holdings within 15 days.
The order states that these directions will remain in force until further notice and SEBI’s investigation continues.
SEBI: No clean chit issued
SEBI also clarified that no clean chit was ever given in this matter, countering recent media speculation. The market regulator emphasized the need for swift action to safeguard investor confidence and ensure market integrity.
