MONEY
SEBI bars IndusInd ex-CEO, four others from markets over insider trading
- IBJ Bureau
- May 29, 2025
The Securities and Exchange Board of India (SEBI) has barred former Chief Executive Officer of IndusInd Bank, Sumant Kathpalia, and four others from accessing the securities markets in connection with an alleged case of insider trading in the bank’s shares.
The markets regulator has also impounded Rs 19.78 crore collectively from the five individuals, according to an interim order passed by the SEBI.
The other officials restrained by the SEBI are Arun Khurana, executive director and deputy CEO of the bank at the time of the alleged violation; Sushant Sourav, head of treasury operations; Rohan Jathanna, head of GMG operations; and Anil Marco Rao, chief administrative officer of consumer banking operations.
These senior executives are accused of trading in IndusInd Bank shares while in possession of unpublished price-sensitive information (UPSI), a breach of insider trading regulations.
The case stems from a master direction issued by the Reserve Bank of India (RBI), which had a significant impact on IndusInd Bank’s operations. The bank’s internal team had evaluated the financial implications of the directive and possessed non-public information at the time.
The SEBI’s investigation had found that the five individuals had executed trades before this sensitive information was made public, using their access to confidential insights for potential personal gain.
Accordingly, the SEBI said: “All the noticees, viz noticee nos. 1 to 5, are hereby restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, until further orders.”
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