Insider trading taint on former IndusInd Bank CEO

Sebi has barred Sumant Kathpalia, four other bank officials from the market for the offence

- Neha Joshi

India's capital markets watchdog has cracked down on IndusInd Bank Ltd's (IBL) former managing director and chief executive officer (CEO) Sumant Kathpalia, along with four other senior officials for alleged insider trading, impounding gains of ₹19.78 crore and restraining them from trading in securities until further notice.

The five executives were issued show-cause notices over allegations of offloading shares while in possession of unpublished price sensitive information (UPSI) related to a massive accounting discrepancy.

Apart from Kathpalia, the Securities and Exchange Board of India's (Sebi's) order on Wednesday barred former executive director and deputy CEO Arun Khurana, treasury operations head Sushant Sourav, global markets group (GMG) operations head Rohan Jathanna, and Anil Marco Rao, chief administrative officer of consumer banking operations from the market for alleged insider trading.