Mumbai, May 29 || The stock of IndusInd Bank has declined 11 per cent since March 10 following the bank's disclosure of suspected fraud and concerns over insider trading.
On March 10, the bank’s then Chief Executive Officer Sumant Kathpalia said during an analyst call that these derivative trades took place over five to seven years ago and came to light when the bank took the review of the portfolio after the RBI's accounting framework, which was identified by September and October 2024.
Soon after, the bank started an internal review in the matter and informed the regulator about it. The bank had also appointed an external agency to validate its internal findings.
On Thursday, the banks’ shares were trading at Rs 813.95 apiece, up Rs 8.80 or 1.09 per cent.
In the latest development, the Securities and Exchange Board of India (SEBI) has barred former Kathpalia and four others from dealing in the share market. SEBI said they were aware of unpublished price sensitive information about the lender's derivative trades.
IndusInd Bank's former executive director and deputy CEO, Arun Khurana, along with head of treasury operations Sushant Sourav, head of GMG operations Rohan Jathanna, and chief administrative officer of consumer banking operations Anil Marco Rao are the other officials named in the order.
The individuals have been restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner until further orders, the SEBI said in an interim order.