Confidential information was used for personal benefit
Capital Market Regulator SEBI on Wednesday banned former IndusInd Bank CEO Sumant Kathpalia and four other officials from the security market in the alleged case of discriminating business in the bank shares. The Securities and Exchange Board of India (SEBI) has also collectively seized an amount of Rs 19.78 crore from these five people. The persons banned by SEBI include the bank’s then executive director and deputy CEO Arun Khurana, Head of Treasury Operation Sushant Sourav, Head of GMG Operation Rohan Jathana and Chief Administrative Officer (CAO) of Consumer Banking Operation Anil Marco Rao.
Senior officials of the bank violated the rules
These senior officials of the private sector have alleged that they have transacted in IndusInd Bank shares while being unpublished price-sensitive information with them, which is violating the insider trading rules. The case stems from the master directive issued by the Reserve Bank of India (RBI), which had a significant impact on the operation of IndusInd Bank. The bank’s internal team had evaluated the financial implications of that instruction and at that time they had non-public information available.
Confidential information was used for personal benefit
SEBI in his investigation found that these five persons carried out the share deal even before this sensitive information was made public, and used their reach to confidential information for possible personal benefits. SEBI said in his interim order, “The five people receiving notice are prevented from purchasing, selling or transaction directly or indirectly until further orders.” Let us tell you that on Wednesday, the shares of IndusInd Bank closed at Rs 804.75 with a decline of Rs 16.30 (1.99%) on BSE on Wednesday. IndusInd Bank shares have a 52 week high of Rs 1550.00.
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