Pre-clearance seen as key defence for IndusInd Bank execs in Sebi probe

Sebi probes potential insider trading in bank's share sales

The Securities and Exchange Board of India (Sebi) is investigating potential insider trading violations at IndusInd Bank, where the “pre-clearance” of trades may emerge as a pivotal defence for senior executives.

 

Sebi is reportedly examining whether five senior IndusInd executives possessed unpublished price-sensitive information (UPSI) when they sold shares on the open market. The regulator has also requested details of trades executed by these executives.

 

Stock exchange disclosures reveal that between May 2023 and June 2024, IndusInd Chief Executive Officer (CEO) Sumant Kathpalia offloaded nearly 950,000 shares worth roughly Rs 134 crore, while Deputy CEO Arun Khurana sold 550,000 shares