Arun Khurana, former deputy chief executive of IndusInd Bank, has deposited 50 percent of the alleged insider trading gains with Securities and Exchange Board of India (SEBI). And, following the deposit, SEBI lifted restrictions on Khurana’s bank accounts.
The development comes amid a wider governance and accounting scandal that shook the private lender earlier this year. Revelations of irregularities led to the resignation of Khurana and former CEO Sumant Kathpalia, sparking concerns about internal controls and corporate governance.
Six senior IndusInd Bank officials, including Kathpalia and Khurana, were investigated for allegedly using unpublished price-sensitive information related to the bank’s quarterly results and loan portfolios to generate illegal profits. In an interim order, SEBI barred the officials from the securities markets and directed them to deposit ₹19.78 in unlawful gains, with most of the sum linked to Kathpalia and Khurana.
On September 25, the Securities Appellate Tribunal (SAT) granted partial relief to Khurana, permitting him to operate his accounts upon depositing half of the alleged gains. Khurana has now complied with this order, while the investigation into the broader network of trading channels remains active.
The scandal has unsettled investor confidence in IndusInd Bank and highlighted ongoing concerns about governance and ethical standards in India’s private banking sector. The bank has stated it is cooperating fully with the authorities and has initiated a review of compliance and monitoring mechanisms to prevent future lapses.
