SEBI Accuses Indusind Bank Of Insider Trading And Accounting Discrepancies

SEBI Accuses Indusind Bank Of Insider Trading And Accounting Discrepancies

The bank has appointed an independent professional firm to conduct a comprehensive investigation

IndusInd Bank is attending to a potential insider trading issue about accounting discrepancies from internal derivative trades, particularly early terminations, leading to notional profits, flagged by the Securities and Exchange Board of India (SEBI).

The bank could face a Rs.1,959.98 crore impact in the Financial Year 2025, discontinue internal derivative trades and fix accountability for the lapses.

The bank explained to the market regulator that the report identified certain aspects that required a determination from an ‘insider trading perspective’.

IndusInd Bank stated, "We are examining the findings in the report. Based on the outcome of the examination, the bank will take necessary steps under applicable law, including the bank’s Insider Trading Code.”

It determined a cumulative adverse accounting impact on profit and loss (P&L) at Rs.1,959.98 crores as of 31 March 2025, like the amount disclosed on 15 April 2025.

The bank committed to reflecting the resultant impact of the accounting discrepancies in the financial statements for FY 2024-25 and taking measures to strengthen internal controls. It confirmed discontinuing internal derivative trades on 1 April 2024.

SEBI’s recent report to the bank identified incorrect accounting of internal derivative trades, especially in early termination, resulting in the recording of notional profits as the root cause for the discrepancy.

While examining the role and action of key employees, the regulator will take steps to fix accountability on the persons responsible for the lapses and realign roles and responsibilities of senior management.

Meanwhile, the bank has appointed an independent professional firm to conduct a comprehensive investigation.