Last Updated:May 28, 2025, 19:58 IST
SEBI has banned former IndusInd Bank CEO Sumant Kathpalia and four other officials from the securities market over insider trading allegations.
SEBI’s action highlights growing scrutiny on financial misconduct in India’s banking sector. (IMAGE: REUTERS)
The Securities and Exchange Board of India (SEBI) on Wednesday barred former IndusInd Bank CEO Sumant Kathpalia, former deputy CEO and three other senior officials from participating in the securities markets over allegations of insider trading.
The interim order comes in the wake of a major accounting scandal that rocked the private sector lender earlier this year. In March, IndusInd Bank had disclosed that it suffered a hit of approximately ₹1,900 crore due to years of misreporting internal derivative trades. The bank said the issue had been traced back to incorrect internal accounting practices within its treasury department.
In a separate issue, the bank also reported that an internal audit of its microfinance portfolio revealed around ₹660 crore was wrongly recorded as interest income over three consecutive quarters. This misreporting further raised questions about the bank’s internal controls and financial reporting practices.
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