Former IndusInd Bank deputy pays 50% of alleged insider trading gains to SEBI

IndusInd Bank’s former deputy chief has deposited 50% of the alleged insider trading gains with India’s markets regulator, BSE said on Friday.

Restrictions on former deputy Arun Khurana’s bank accounts have been lifted, a notice from the stock exchange said.

The private bank faced a crisis earlier this year following revelations of governance and accounting irregularities, which ultimately led to the departures of its former CEO Sumant Kathpalia and deputy Khurana.

Six bank officials, including Khurana, were under investigation by the Securities and Exchange Board of India for insider trading. These officials were barred from the securities markets in the interim and ordered to deposit so-called illegal gains of 197.8 million rupees, with the bulk of the amount attributed to Kathpalia and Khurana.

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The Securities Appellate Tribunal in a September 25 order had granted partial relief to Khurana and asked him to deposit half of the alleged gains in favour of SEBI.