May 28, 2025 09:10 pm IST
IndusInd Bank officials are accused of trade in IndusInd Bank shares, while unpublished price-sensitive information (UPSI) capture
Market Regulator SEBI on Wednesday prevented former IndusInd Bank Chief Executive Officer, Sumant Kathpalia, and four others from reaching the security markets in connection with the alleged Insider trading case in the bank shares.
In addition, the regulator has impounded According to an interim order passed by SEBI, collectively from five persons 19.78 crores.
Other officials restrained by SEBI are the executive director of the bank and the deputy CEO of the bank at the time of alleged violation; Sushant Sourav, Head-Treasury Operations; Rohan Jathana, Head- GMG Operations and Anil Marco Rao, Chief Administrative Officer (CAO)- Consumer Banking Operations.
These senior officials are accused of trading in Indusind Bank shares, while in the possession of unpublished price-sensitive information (UPSI), there is a violation of Insider Trading Rules.
The case stems from a master direction issued by the Reserve Bank of India (RBI), which had a significant impact on the operation of IndusInd Bank. The internal team of the bank had evaluated the financial implications of the instructions and had non-public information at that time.
SEBI investigation found that five persons executed trades before making this sensitive information public, using access to confidential insight for potential personal benefits.
Accordingly, SEBI said: “All notice, ie notice no. 1 to 5, by buying, selling or dealing in securities, either direct or indirectly, in any manner, in any way, further orders, until further orders, in any way, in any way, further orders.”
