On May 28, 2025, the Securities and Exchange Board of India (SEBI) issued an interim order barring five senior executives of IndusInd Bank, including former CEO Sumant Kathpalia and former Deputy CEO Arun Khurana, from accessing the securities markets. The action stems from allegations of insider trading related to undisclosed accounting discrepancies in the bank’s derivative contracts.

SEBI alleges that these executives sold shares of IndusInd Bank while in possession of unpublished price-sensitive information (UPSI) concerning significant accounting lapses, allowing them to avoid losses totaling approximately ₹19.78 crore. The regulator has frozen their accounts to the extent of the avoided losses.

This marks the first instance where a bank’s chief executive has faced insider trading allegations by SEBI, underscoring the regulator’s commitment to maintaining transparency and fairness in India’s financial markets.

The three other individuals named in the case are Sushant Sourav, Anil Rao, and Rohan Jathanna. IndusInd Bank has not commented on the matter.

sources