Why SEBI has summoned company secretary of IndusInd Bank
What's the story
The Securities and Exchange Board of India (SEBI) has summoned IndusInd Bank's Company Secretary Anand Das in connection with an alleged insider trading case, Moneycontrol has reported. The summons comes as part of a wider investigation into the conduct of a zonal head at the bank. The regulator is probing how an internal complaint related to this case was handled by the bank's compliance and secretarial department, and later, its audit committee.
Broader inquiry
SEBI's probe extends to Bhavna Doshi
The SEBI probe also extends to former audit committee chairperson Bhavna Doshi. Last week, a SEBI investigation team visited IndusInd Bank's Andheri office, where they collected recordings of audit committee meetings discussing the alleged insider trading case. The regulators questioned officials from these departments about their role in the investigation.
Internal investigation
Whistleblower complaint led to internal inquiry at IndusInd Bank
The whistleblower complaint prompted an internal inquiry at IndusInd Bank, which involved seeking opinions from external law firms. The probe looked into allegations that the Eastern Zonal Head may have traded shares of client companies while in possession of unpublished price-sensitive information (UPSI). However, despite concerns raised during this review, the individual was allowed to leave without formal escalation to SEBI.
Trading allegations
Zonal head allegedly traded shares before public disclosure of information
The main bank official under scrutiny is said to have traded before the information was made public. The trades involved Kolkata-based firms such as Kesoram Industries, Birla Tyres, Eveready Industries, and McLeod Russel among others. This development comes amid increased regulatory scrutiny over governance and insider trading practices at IndusInd Bank.
Past actions
SEBI had previously acted against IndusInd Bank officials
In May 2025, SEBI had barred former MD and CEO Sumant Kathpalia, ex-deputy CEO Arun Khurana, as well as other senior officials from the securities market over alleged insider trading, linked to the bank's derivatives accounting discrepancies. However, SEBI did not respond to an email seeking comments on this particular matter.