New Delhi, May 28 (PTI) Markets Regulator SEBI on Wednesday prevented former IndusInd Bank CEO, Sumant Kathpalia, and four other senior officials from reaching the security markets in relation to an alleged insider trading in the bank shares.
Apart from the market ban, SEBI has collectively imposed Rs 19.78 crore from five persons as per an interim order passed by the regulator.
Arun Khurana is the other officer of Indasind Bank Limited (IBL) restrained by SEBI, who was Executive Director and Deputy CEO 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.
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These senior officials allegedly traded in the shares of IndusInd Bank, while the bank’s derivative portfolio account remains in the remaining amount of discrepancies in the possession of unpleasant value-sensitive information (UPSI). By doing this, he violated the internal trading rules.
The regulator said in its 32-page order, “During the preliminary examination conducted by SEBI, based on the evidence collected so far, it is prima facials that all notice is traded in the scrip, which knows about UPSIs related to discrepancies and avoid great damage.”
The case originated from a master direction issued by the Reserve Bank of India (RBI), which had a significant operation and financial impact on the IndusInd Bank.
SEBI said that the internal team of the bank was aware of the financial implications due to discrepancies in the derivative portfolio and had already started calculating the impact internal.
An preliminary examination revealed that on November 30, 2023, an email, bank heads, accounts, some employees were sent. The communication quoted a mark of Rs 1,749.98 crore as an estimated impact of discrepancies in the derived portfolio.
In addition, during the preliminary examination, it is Prima Feshi that the members of the senior management of the IBL knew about the UPSI, including the notice (five officers), who belonged to the discrepancies and they had a constant supervision on it.
Evidence analyzed during the preliminary examination has shown that SEBI said that the IBL scrips during the internal formula, SEBI said.
SEBI said that on December 6, 7 and 8, 2023, the email on December 11, 2023 referred to a discrepancy of about Rs 1,362 crore with a final figure of Rs 1,572 crore to some employees.
The examination also revealed that figures about discrepancies were not only being tracked internal, but were also prepared to present to RBI. On September 16, 2023, 6 March, 2024, and May 5, 2024, the figures of an discrepancy of Rs 1,572 crore, Rs 1,776.49 crore and Rs 2,361.69 crore ended September 2023, December 2023 and March 2024 for September for September 2023, December 2023 and March 2024.
However, this information was manifested to the public only on March 10, 2025 through stock exchange filing, SEBI said.
It was also noted that the senior management emphasized the validation of these figures externally. Accordingly, KPMG was appointed in January 2024, to review the discrepancies identified by the internal team. The preliminary examination showed that KPMG presented a figure of Rs 2,093 crore as a negative impact from discrepancies, covering the data till December 31, 2023.
In his order, SEBI noted the notice. 1 to 5 (five officers) traded in the scrip of IBL during the internal formula and accordingly stopped “buying, selling or dealing in securities or either directly or indirectly, in any manner, in any manner, until further orders,” to further orders. “On 29 April, CEO Kathpalia and Deputy CEO Khurana resigned from the bank. After his exit, the IndusInd Bank Board appointed a committee of officers to oversee the daily operation, as long as a new MD & CEO takes charge or for a period of three months, whatever is earlier.
Earlier this month, fraud-hit private sector lender stated a loss of Rs 2,329 crore for the March quarter, its worst performance, as interim management opted to go for a deep-clinic practice beyond recognizing the impact of incorrect accounting practices.
In the March quarter, the bank influenced all the irregularities brought in the notice, including a hit of Rs 1,960 crore from the wrong recognition of the derivative trades, a cumulative interest income of Rs 674 crore due to wrong accounting, revealing a fraud of Rs 172 crore, was disclosed, which was a type of fraud, which was a type of. In the past, as “other assets” and “other liabilities”, and also recognized high slippery.
The bank’s internal audit report revealed “participation of senior bank officials including former major management personnel (KMP) in overrising the major internal controls”. The bank reported a possible participation of senior management to the central government in accounting fraud. PTI SP DP Sri Sri
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