Sebi Slams IndusInd Bank Execs with Market Ban over Insider Trading

The Securities and Exchange Board of India (Sebi) slammed a significant ban on Wednesday, restricting former IndusInd Bank CEO Sumant Kathpalia and four other senior executives from accessing securities markets. This action arrives amid accusations of insider trading involving the bank's shares.

According to Sebi's interim order, Rs 19.78 crore has been collectively seized from the individuals accused. The alleged violators also include Arun Khurana, former Executive Director and Deputy CEO; Sushant Sourav, ex-Head of Treasury Operations; Rohan Jathanna, former Head of GMG Operations; and Anil Marco Rao, the ex-Chief Administrative Officer of Consumer Banking Operations.

Reports indicate that these executives executed trades while possessing unpublished price-sensitive information regarding a Master Direction issued by the Reserve Bank of India, which had considerable financial implications for IndusInd Bank. Sebi's findings suggest misuse of confidential insights for personal gain.

(With inputs from agencies.)