SEBI investigates insider trading at IndusInd Bank amid accounting gaps
SEBI investigates insider trading at IndusInd Bank amid accounting gaps
The Securities and Exchange Board of India (SEBI) is investigating possible insider trading by senior officials at IndusInd Bank.
The probe follows the bank's disclosure of significant accounting lapses in its derivatives portfolio.
The bank's shares have fallen over 27% since the discrepancies were first reported on March 10.
IndusInd Bank is India's fifth largest private lender with a $63 billion balance sheet.
What is the IndusInd Bank controversy
In early March, IndusInd Bank disclosed a $175 million (~₹2,100 crore) discrepancy in its derivatives portfolio, equivalent to a 2.35% reduction in its net worth.
These irregularities, stemming from unauthorized internal derivatives trades over at least six years, have raised concerns about the bank's governance and risk management practices.
The bank's management has also faced intense scrutiny, with the RBI reportedly urging the resignation of CEO Sumant Kathpalia and his deputy pending the identification of suitable successors.
