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Former IndusInd Bank CEO Sumant Kathpalia has proposed a Rs 5.21 crore settlement to the SEBI to resolve an insider trading case
IndusInd Bank
Former IndusInd Bank CEO Sumant Kathpalia has proposed a Rs 5.21 crore settlement to the Securities and Exchange Board of India (SEBI) to resolve an insider trading case, according to a report by The Economic Times.
SEBI’s settlement mechanism allows individuals accused of regulatory violations to resolve matters without admitting or denying wrongdoing, by paying a settlement amount.
In May, SEBI had barred Kathpalia and four other senior IndusInd Bank officials from accessing the securities markets over alleged insider trading. The regulator also impounded Rs 19.78 crore from the five individuals, as per its interim order.
The others named in the order include Arun Khurana (Executive Director and Deputy CEO at the time), Sushant Sourav (Head of Treasury Operations), Rohan Jathanna (Head of GMG Operations), and Anil Marco Rao (CAO – Consumer Banking Operations).
SEBI had alleged that the executives traded in IndusInd Bank shares while in possession of unpublished price-sensitive information (UPSI), violating insider trading norms.
The case is linked to a directive issued by the Reserve Bank of India (RBI) that had material implications for the bank’s operations. SEBI’s probe found that the executives used confidential information derived from internal assessments of the RBI circular to execute trades before it became public.
“All the Noticees… are hereby restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, until further orders,” SEBI said in its interim ruling.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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