Source: ZeeBusiness
Capital market regulator SEBI has cracked the whip on five top executives in connection with suspected insider trading in the IndusInd Bank stock. According to an ex parte interim order issued by the market watchdog, the individuals used undisclosed price sensitive information to offload certain quantities of the lender's stock to illegally avoid imminent losses worth an estimated Rs 19.78 crore. They delayed the Reese’s of this information until the stock lost more than 27 per cent of its value.
The regulator has frozen the bank and trading accounts of the executives, banning them from all kinds of transactions on Dalal Street.
As per the order, the price sensitive information was related to the period between December 4, 2023, to March 10, 2025.
The said information was released in the public domain on March 10, 2025, triggering a 27.2 per cent slide in the stock the next day, from Rs 900.6 all the way to Rs 656 apiece. A preliminary investigation found that the five individuals sold large quantities of the stock just before the public announcement.
Former IndusInd deputy CEO Arun Khurana offloaded 3,48,500 equity shares amounting to Rs 52.99 crore at an average Rs 1,520 apiece.
Former MD and CEO Sumant Kathpalia sold 1,25,000 shares worth Rs 19.17 crore at Rs 1,534 apiece.
IndusInd Bank Head of Treasury Operations Sushant Sourav sold 2,065 units of the stock for Rs 26 lakh, while Head of GMG Operations Rohan Jathanna sold shares worth Rs 25 lakh.
The private sector lender’s chief administrative officer for consumer banking operations Anil Marco Rao sold 1,000 units, amounting to Rs 14 lakh at an average Rs 1,451 apiece.
All of the accused are ordered to disclose information about their property within the next 15 days, as per the ex-parte order.
The market regulator has ordered that the amount of Rs 19.78 crore be deposited in a fixed deposit, carrying a lien in its favour.
The investigation is underway and the order will remain in force until further directions, according to SEBI.
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