SEBI Bars IndusInd Bank Executives Over Insider Trading Allegations

Mumbai, May 29, 2025 — The Securities and Exchange Board of India (SEBI) has taken disciplinary action against several executives of IndusInd Bank, barring them from participating in the securities market. The action comes in connection with an alleged insider trading case that is currently under investigation.

According to SEBI's preliminary findings, the concerned officials were found to have used unpublished price-sensitive information (UPSI) to trade in the bank’s securities for personal gain. The regulator stated that this behavior violated the Prohibition of Insider Trading Regulations and undermined market integrity.

While SEBI did not disclose the exact number of individuals involved, sources suggest that senior-level employees in the finance and compliance divisions are among those named. The regulator has issued interim orders restraining them from trading, pending further inquiry.

This move is part of SEBI’s broader crackdown on corporate governance lapses in India’s financial sector, which has seen increased scrutiny in recent months. The capital markets watchdog has emphasized the importance of transparency and ethical conduct among listed entities and their key personnel.

IndusInd Bank has acknowledged the regulatory action and stated it is fully cooperating with SEBI’s investigation. The bank also affirmed its commitment to maintaining the highest standards of compliance and governance.

As the probe continues, industry experts expect SEBI to issue more such orders in similar cases across the sector, signaling zero tolerance toward insider trading and unethical practices.