Major Regulatory Action: SEBI Issues Ex-Parte Interim Order in IndusInd Bank Insider Trading Case

On May 28, 2025, the Securities and Exchange Board of India (SEBI) issued a detailed Ex-Parte Interim Order under Sections 11, 11(4), 11(4A), and 11B of the SEBI Act, 1992, in connection with alleged insider trading activities involving senior management at IndusInd Bank Limited (IBL).

The matter stems from IBL’s disclosure on March 10, 2025, regarding discrepancies in the derivative portfolio accounting—linked to RBI’s Master Direction—resulting in a projected adverse impact of Rs. 1,529.88 crore, or 2.35% of the bank’s net worth.

The order identifies five senior executives (including the former MD & CEO and Deputy CEO) as Noticees who allegedly sold shares during the UPSI period (Dec 4, 2023–Mar 10, 2025), avoiding combined losses of nearly Rs. 19.78 crore.

SEBI has:

• Impounded bank accounts equivalent to the loss avoided;

• Restrained the Noticees from accessing the securities market;

• Directed disclosure of their full asset portfolios.

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This order reinforces SEBI’s commitment to maintaining market integrity, ensuring equal access to price-sensitive information, and sending a strong message against insider trading.