Shares of IndusInd Bank Ltd. gained 2.22% to ₹857.05 on Thursday after the Securities and Exchange Board of India (Sebi) reportedly cleared two of its former top executives—CEO Sumant Kathpalia and deputy CEO Arun Khurana—of any wrongdoing in an insider trading investigation.
According to CNBC-TV 18 sources, SEBI has found no evidence of insider trading by top IndusInd Bank executives.
The Sebi probe was launched to assess whether the executives had violated norms while selling shares acquired under the bank’s Employee Stock Ownership Plan (ESOP). However, a person familiar with the matter said all disclosures were properly made and the trades were conducted post-vesting and in compliance with regulations.
The regulatory relief comes after a rough few months for the bank. In March, IndusInd reported a ₹1,960 crore forex derivative accounting lapse, leading to stock pressure, a PwC and Grant Thornton audit, and the resignation of the aforementioned executives.
Despite these challenges, the stock showed strength in Thursday’s session, touching a high of ₹863.50. The bank’s market cap now stands at ₹667.49 billion, with over 11.7 million shares traded so far in the session. Its P/E ratio is 9.21 and it offers a 1.93% dividend yield.
Market observers noted that while the forensic audit revealed awareness of the accounting anomaly, no evidence was found to support insider trading allegations, bringing short-term regulatory clarity to the lender.
More developments may unfold as the RBI and board evaluate audit findings, but investors seem to be pricing in relief from regulatory headwinds for now.
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