SEBI Bans Former IndusInd CEO & Four Others For Insider Trading

The Securities and Exchange Board of India (SEBI) has barred former IndusInd Bank CEO Sumant Kathpalia and four other current and former senior executives from dealing in securities.

The action follows allegations of insider trading related to accounting discrepancies in derivative contracts. SEBI also impounded Rs 19.8 crore, the alleged avoided loss from share sales before the matter was disclosed. The regulator said the executives were aware of the Rs 1,750-crore earnings impact by November 2023, but the bank only informed the public in March 2025. The others named are ex-deputy CEO Arun Khurana, Sushant Sourav, Rohan Jathanna, and Anil Marco Rao. SEBI noted that emails and internal documents showed the issue was discussed internally but not treated as unpublished price-sensitive information until March.