Priyanka Tiwari
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Suspense crime, Digital Desk : The Securities and Exchange Board of India (SEBI) has taken significant regulatory action, barring Sumant Kathpalia, the Managing Director and CEO of IndusInd Bank, along with four other entities/individuals, from accessing the securities market. This disciplinary measure stems from an investigation into alleged insider trading activities concerning the shares of IndusInd Bank.
According to the SEBI order, Kathpalia and the others are prohibited from buying, selling, or otherwise dealing in securities, either directly or indirectly, for a specified period. The regulator has also imposed monetary penalties. The case reportedly revolves around transactions made while in possession of unpublished price-sensitive information (UPSI) related to IndusInd Bank, prior to its official disclosure to the public, likely around 2020.
The four other entities/individuals implicated alongside Sumant Kathpalia in SEBI's order also face similar restrictions and penalties, although the exact details for each may vary as per the regulatory findings.
This development is expected to place IndusInd Bank's stock under increased scrutiny in today's trading session and in the near future. Investors and market participants will be closely watching the stock's performance and any further statements or clarifications from the bank or the individuals involved.
SEBI's action underscores its commitment to maintaining market integrity, preventing unfair trade practices, and protecting the interests of investors by ensuring a level playing field. Such enforcement actions against alleged insider trading are crucial for upholding transparency and trust in the Indian capital markets.
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