Overview

• The Securities and Exchange Board of India (SEBI) is investigating six IndusInd Bank officials for possible insider trading violations.
• The probe focuses on whether executives sold stock options while aware of undisclosed accounting lapses that created a $230 million gap in the bank’s balance sheet.
• A forensic review by Grant Thornton revealed pre-disclosure share trades by two executives, prompting SEBI to request the audit report.
• IndusInd Bank’s CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned in April 2025 following the public disclosure of the accounting issues in March.
• SEBI has also asked the bank to explain why it delayed revealing the accounting lapses, which were known internally as early as September 2024.