'No insider trade at IndusInd Bank'

The stock market regulator has closed its investigation into potential insider trading violations by top IndusInd Bank executives, a person aware of the matter said, as it found all disclosures in place and no evidence of wrongdoing.

- Gopika Gopakumar

The Securities and Exchange Board of India (Sebi) had sought information from the private lender about the trades executed by Sumant Kathpalia and Arun Khurana—IndusInd Bank's chief executive officer (CEO) and deputy CEO who have since resigned—while they were in possession of unpublished price-sensitive information.

"Sebi asked for some data, but nothing was found. Because it (the trade) was done after they vested the Esops. It was announced. They didn't do it without informing," the person said on the condition of anonymity, adding all disclosures were made.

In March, IndusInd Bank reported improper accounting in forex derivatives that blew a ₹1,960 crore hole in its books, triggering a crash in its stock price, audits by PricewaterhouseCoopers (PwC) and Grant Thornton, and the exit of top executives amid regulatory scrutiny.