SEBI Bars Former IndusInd Top Bosses On Insider Trading Charges

The Securities and Exchange Board of India has barred five senior former executives of IndusInd Bank, including former managing director and chief executive officer Sumant Kathpalia and former deputy CEO Arun Khurana, from trading in securities for alleged insider trading.

The five were found to have prima facie violated insider trading rules following a suo motu probe by SEBI into the sharp fall in IndusInd Bank’s share price on 10 March. The bank had then disclosed significant discrepancies in its derivatives portfolio, which were expected to impact its net worth by around ₹15.30 billion, or 2.35% of its net worth as of December 2024.

The ex-parte interim order issued today placed restrictions on five individuals, including Sushant Sourav, head of treasury operations; Rohan Jathanna, head of GMG operations; and Anil Marco Rao, chief administrative officer of consumer banking operations.

The SEBI investigation revealed that between 4 December 2023 and 10 March 2025, these executives, privy to unpublished price-sensitive information about the losses, sold large quantities of IndusInd Bank shares before the information was made public.

The probe found that the information about the losses was known to senior management by 4 December 2023. Still, it was only disclosed to the stock exchanges more than a year later, on 10 March 2025. Following the disclosure, IndusInd Bank’s share price dropped by over 27% in a single day.

The market regulator said Khurana sold 348,000 shares, avoiding losses of ₹14 million, while Kathpalia sold 125,000 shares, avoiding losses of ₹52 million. The other three executives avoided losses ranging from ₹400,000 to ₹700,000 each. SEBI estimates that the five individuals averted a total loss of up to ₹198 million.

SEBI said further regulatory action may follow as the probe progresses.