SEBI bars former IndusInd Bank CEO Sumant Kathpalia and four others over insider trading allegations
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Markets regulator SEBI has barred former IndusInd Bank CEO Sumant Kathpalia and four senior executives from participating in the securities market over alleged insider trading violations.
The Securities and Exchange Board of India (SEBI), in an interim order issued on Wednesday, also directed the impounding of a total of ₹19.78 crore from all five individuals involved in the case.
Alongside Kathpalia, the officials named in the order include Arun Khurana, who served as Executive Director and Deputy CEO; Sushant Sourav, Head of Treasury Operations; Rohan Jathanna, Head of GMG Operations; and Anil Marco Rao, Chief Administrative Officer for Consumer Banking Operations.
According to SEBI, these executives are accused of engaging in trades involving IndusInd Bank shares while being in possession of unpublished price-sensitive information (UPSI), a serious violation under insider trading regulations.
The alleged misconduct traces back to a Master Direction issued by the Reserve Bank of India (RBI), which carried significant operational implications for the bank. At the time, the accused had access to internal assessments regarding the financial impact of the RBI directive—information that had not yet been made public.
SEBI’s investigation revealed that the individuals used this confidential knowledge to conduct trades ahead of the public disclosure, potentially for personal financial benefit.
In its order, SEBI stated: "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."
