Ex-IndusInd MD & CEO Sumant Kathpalia, Deputy CEO Arun Khurana Face Possible Insider Trading Penalty: Report

The Board of IndusInd Bank is considering penalties on former MD & CEO Sumant Kathpalia and former Deputy CEO Arun Khurana for alleged insider trading, according to a report by Moneycontrol, citing unnamed sources.

The Board has held multiple meetings to discuss the matter and has also sought legal opinion. A forensic audit by Grant Thornton indicated that both executives were aware of discrepancies in currency derivatives accounting and traded in the bank’s shares before the issue became public. The Board is reviewing these trades under the bank’s insider trading policy, which prescribes penalties based on violations. The executives will be allowed to respond before any final decision is taken, the report said. The Reserve Bank of India (RBI) had earlier raised concerns about the bank’s handling of the accounting issue, prompting the audit.