IndusInd ex-CEO among five banned from market

Markets regulator Sebi on Wednesday barred a former Chief Executive Officer of IndusInd Bank, Sumant Kathpalia, and four others from accessing the securities markets, in connection with an alleged case of insider trading in the bank’s shares.

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Also, the regulator has impounded Rs 19.78 crore collectively from the five individuals, according to an interim order passed by Sebi.

The other officials restrained by Sebi are Arun Khurana, Executive Director and Deputy CEO of the bank at the time of the alleged violation; Sushant Sourav, Head-Treasury Operations; Rohan Jathanna, Head-GMG Operations; and Anil Marco Rao, Chief Administrative Officer (CAO)-Consumer Banking Operations.

These executives are accused of trading in the bank’s shares while in possession of unpublished price-sensitive information (UPSI), a breach of insider trading regulations. The case stems from a Master Direction issued by the RBI, which had a significant impact on the bank’s operations.