SEBI Bans Ex-IndusInd Bank CEO, Others for Insider Trading

SEBI has barred former IndusInd Bank CEO Sumant Kathpalia, ex-Deputy CEO Arun Khurana, and three others from the securities market over insider trading allegations.

They allegedly sold shares while possessing unpublished price-sensitive information (UPSI) about a ₹1,529 crore loss to the bank’s derivative portfolio.

These trades occurred between December 2023 and March 2025, prior to public disclosure, which led to a 27% drop in the bank’s share price.

SEBI has also impounded ₹19.78 crore, said to be the gains from the trades, and directed that the amount be held in fixed deposits under SEBI’s lien. The investigation is ongoing.