Last Updated:May 29, 2025, 11:22 IST
IndusInd Bank shares are expected to be in focus today after SEBI passed an ex-parte interim order in an insider trading case
IndusInd Bank Share Price Today
IndusInd Bank shares were trading in the green even as the capital markets regulator, SEBI, passed an ex-parte interim order in an insider trading case involving five senior executives, including former CEO Sumant Kathpalia.
SEBI’s investigation found that the individuals sold IndusInd Bank shares while in possession of unpublished price-sensitive information (UPSI), helping them avoid losses worth nearly Rs 20 crore. As part of its order, SEBI has frozen their demat and bank accounts up to the extent of the alleged gains. All five individuals are barred from accessing the securities market until further notice.
The regulator has directed the executives to submit a comprehensive account of their financial assets and holdings within 15 days. This step is part of SEBI’s broader inquiry into the extent of possible rule violations.
The case revolves around discrepancies in the bank’s derivative portfolio, which came to light internally in late 2023 after the Reserve Bank of India issued new guidance on derivative accounting. Despite estimating a potential adverse impact of Rs 1,572 crore (about 2.35% of net worth) by December 2023, the bank did not disclose the issue to stock exchanges until March 10, 2025.
Once the information became public, IndusInd Bank’s shares plunged 27% in a single trading session—from Rs 900.60 to Rs 655.95. SEBI noted that key executives, including Kathpalia and Deputy CEO Arun Khurana, sold substantial shareholdings just before the announcement. Kathpalia sold 1.25 lakh shares, while Khurana sold over 3.48 lakh shares.
SEBI highlighted that none of these transactions were made under pre-approved trading plans. The trades were executed during the UPSI period, which directly contravenes insider trading norms.
The market regulator calculated that the total loss avoided by these insiders amounted to Rs 19.78 crore. SEBI asserts that these individuals unfairly profited by leveraging confidential financial information before it was publicly disclosed.
SEBI emphasized that this is an interim action and the matter is still under investigation. The scope of the probe includes potential disclosure failures and the involvement of other individuals. SEBI said the move was necessary to uphold market integrity and safeguard investor confidence.
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