SEBI passes interim order in IndusInd Bank’s KPMs matter

29 May 2025 , 10:25 AM

The Securities and Exchange Board of India (SEBI) has passed an interim order in the insider trading case that involves key managerial personnel (KMPs) of IndusInd Bank. This includes the former CEO and senior executives of the bank. 

The regulator has restricted five individuals from sale and purchase of securities and seized their bank accounts without any prior approval from SEBI.

As per the interim order, the accused were engaged in insider trading by offloading shares while they had unpublished price-sensitive information (UPSI) related to an internal disclosure IndusInd Bank made on March 10.

The disclosure was related to discrepancies in derivative accounting. This may dent about 2.35% of the bank’s net worth.

The individuals that SEBI named in their order include: Arun Khurana, former Deputy CEO, Sushant Sourav, former Head of Treasury Operations, Anil Marco Rao, Chief Administrative Officer, Rohan Jathanna, former Senior Vice President, Global Markets Group, and Sumant Kathpalia, current Managing Director and CEO of IndusInd Bank.

SEBI discovered that these individuals sold shares before any public announcement made by the company of its accounting discrepancies. Hence, avoiding substantial losses by taking action on material non-public information.

The regulator has imposed a total of ₹19.07 Crore in the case, this includes ₹14.40 Crore from the account of Arun Khurana and ₹5.2 Crore from Sumant Kathpalia.

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