IndusInd Bank shares in focus after Sebi issues correction in insider trading case

IndusInd Bank shares will be in focus after the capital markets regulator Sebi issued a corrigendum to its recent interim order in the bank’s insider trading case. The regulator clarified that a key document referenced in the investigation was incorrectly termed a “board note” and should have been described as an “engagement note.”

In its June 6, 2025, corrigendum, Sebi stated that the term "board note" mentioned in the original order should be read as "engagement note," which was signed by the CFO and two senior executives.

The original order had said that KPMG’s appointment to review the bank’s derivative exposure was based on a board note. The correction clarifies that the decision was based on an engagement note — a document signed by senior officials but not considered a formal board-level communication.


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The insider trading case revolves around allegations that these executives sold shares of IndusInd Bank while in possession of unpublished price-sensitive information (UPSI) regarding significant derivative losses at the bank.

According to Sebi’s order, IndusInd Bank’s internal review had identified a negative financial impact of Rs 1,572 crore — approximately 2.35% of its net worth. However, this information was not disclosed to the public until March 10, 2025.

Sebi’s investigation revealed that Kathpalia and Khurana sold shares — 1.25 lakh and 3.48 lakh, respectively — before the public announcement. By doing so, they avoided losses estimated at nearly Rs 20 crore.

Sebi has frozen their bank and demat accounts to the extent of the gains and barred them from trading in securities until further notice.

IndusInd Bank shares closed at Rs 823.20 in the previous session, up 2.5% on the BSE, while the benchmark Sensex rose 0.92%. The stock is down 15% year-to-date and 45% over the past 12 months, with a market capitalisation of Rs 64,131 crore.

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