IndusInd Bank Share Price Gains After SEBI Bars Former CEO and 4 Senior Officials for Insider Trading

IndusInd Bank witnessed a recovery in its share price following regulatory action from SEBI, which issued an interim order banning the bank’s former Chief Executive Officer and four senior executives from accessing the securities market. This action stems from findings of insider trading linked to delayed disclosures about discrepancies in the bank’s derivatives portfolio.

IndusInd Bank Share Price Sees Recovery on May 29

On May 29, 2025, the share price of IndusInd Bank rose 1.32% by 10:30 AM, after opening with a 0.3% dip. The rebound came after SEBI’s interim order issued a day earlier, which temporarily prohibited five top executives, including the former CEO, from trading in securities due to violations involving unpublished price-sensitive information.

March Crash Triggered by Derivatives Exposure

The stock had previously plunged 34% in March 2025 after it was revealed that there were significant discrepancies in its derivatives portfolio. These discrepancies had a “huge impact,” as acknowledged internally by senior management. So far in 2025, the stock has declined 15%.

SEBI Bars Former CEO and 4 Senior Officials from Market 

SEBI’s interim order names the following individuals:

• Sumant Kathpalia, former Chief Executive Officer
   
• Arun Khurana, former Executive Director and Deputy CEO
   
• Sushant Sourav, Head of Treasury Operations
   
• Rohan Jathanna, Head of GMG Operations
   
• Anil Marco Rao, Chief Administrative Officer for Consumer Banking Operations

These officials are alleged to have traded IndusInd Bank shares while in possession of unpublished price-sensitive information.

Read More: IndusInd Bank to Realign Senior Management Roles After Accounting Review! 

Inside Trading: SEBI’s Findings and Internal Emails Cited

According to SEBI, internal communications dating back to December 4, 2023, indicate that the bank’s senior leadership was aware of the potential impact of the derivatives discrepancies but failed to disclose the information in time. SEBI cited this delay as a key factor behind its suo-motu investigation. The action follows remarks from SEBI Chairman Tuhin Kanta Pandey, who stated the regulator was examining severe violations within the lender’s leadership.

Conclusion 

This development brings renewed focus on transparency and timely disclosures in the financial sector. While the stock saw a short-term gain following the regulatory intervention, the broader implications for investor trust and governance standards remain under watch.

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