SEBI Amends IndusInd Insider Trading Order To Reflect Engagement Note

The Securities and Exchange Board of India has made a key amendment to its insider trading order involving former IndusInd Bank MD and CEO Sumant Kathpalia and four others. The regulator replaced the term "Engagement Letter" with "Engagement Note (signed by the CFO and Noticee nos. 1 and 2)", signalling that the bank's top management—not its board—had appointed KPMG to investigate derivatives accounting discrepancies.

This adjustment subtly shifts the accountability, implying that IndusInd Bank’s board may not have been in the loop when the management independently engaged KPMG. SEBI’s original order had accused the executives of trading on unpublished price-sensitive information related to the findings of the derivatives audit.