Arun Khurana, former Deputy CEO of IndusInd Bank, has had restrictions on his bank accounts lifted following a BSE notice. This comes after he deposited ₹14.4 crore with SEBI, representing alleged illegal gains from insider trading linked to derivative misreporting. Investigations into the case continue.
In a significant regulatory update, the Bombay Stock Exchange (BSE) has confirmed that restrictions on the bank accounts of Arun Khurana, former Deputy CEO of IndusInd Bank, have been lifted. This follows his compliance with a Securities and Exchange Board of India (SEBI) directive to deposit ₹14.4 crore, the amount identified as illegal gains from alleged insider trading.
The case stems from a May 2025 SEBI interim order that barred five senior IndusInd Bank executives, including Khurana and former CEO Sumant Kathpalia, from trading in securities. The order alleged that these individuals sold shares while in possession of unpublished price-sensitive information (UPSI) related to accounting discrepancies in the bank’s derivative portfolio. The total disgorgement across all five executives was pegged at nearly ₹20 crore.
Khurana’s deposit signals partial compliance with SEBI’s enforcement action, though the broader investigation remains active. The lifting of account restrictions may reflect procedural progress, but does not imply exoneration.
Key Highlights:
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Account Restrictions Lifted: BSE confirms that Arun Khurana’s bank accounts are no longer under regulatory freeze.
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Disgorgement Paid: Khurana deposited ₹14.4 crore with SEBI, representing alleged gains from insider trading.
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SEBI Enforcement: The May 2025 interim order targeted five executives for trading on UPSI linked to derivative misreporting.
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Ongoing Investigation: SEBI continues to probe the case; final orders and penalties may follow.
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Market Impact: The scandal has drawn attention to governance practices and compliance standards in India’s banking sector.
This development marks a turning point in one of the year’s most high-profile insider trading cases, with regulatory scrutiny still underway.
Sources: Moneylife, Financial Express, Business Standard