SEBI Probing Securities Law Breaches By IndusInd Bank Senior Officials In Accounting Fraud

SEBI Probing Securities Law Breaches By IndusInd Bank Senior Officials In Accounting Fraud

Pandey said the issues at IndusInd Bank will be dealt with by the Reserve Bank of India (RBI), but Sebi is also looking at securities market violations by the officials of the crisis-hit bank.

PTIUpdated: Thursday, May 22, 2025, 12:44 PM IST
article-image
Markets regulator Sebi is looking into any "egregious violations" by senior management of IndusInd Bank, which has been hit by accounting fraud. | Image: IndusInd Bank (Representative)

New Delhi: Markets regulator Sebi is looking into any "egregious violations" by senior management of IndusInd Bank, which has been hit by accounting fraud, its chairman Tuhin Kanta Pandey said on Thursday.

Pandey said the issues at IndusInd Bank will be dealt with by the Reserve Bank of India (RBI), but Sebi is also looking at securities market violations by the officials of the crisis-hit bank.

"RBI is looking into whatever Sebi has to do in relation to... whatever Sebi's remit is... Sebi is doing... If there are any egregious violations by anyone in their capacity, Sebi is looking into it," Pandey told reporters on the sidelines of an event organised by industry body Assocham.

On Wednesday, IndusInd Bank's board said it suspects involvement of certain employees in the fraud and directed the bank to report the matter to investigative agencies and regulatory authorities.

Fraud in the derivatives and microfinance portfolio as well as balance sheet disclosures have rattled the private sector bank. The bank, that has seen top-level resignations, has ordered an internal audit review and is undergoing a forensics probe.

The internal audit report of the bank revealed "involvement of senior Bank officials, including former Key Management Personnel (KMP), in overriding key internal controls".

The bank has reported likely involvement of the senior management in the accounting fraud to the central government.

On April 29, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned from the bank, following which IndusInd Board appointed a Committee of Executives to oversee the operations of the bank, till a new MD and CEO assumes charge.

Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.

RECENT STORIES

Gold Jumps ₹550 On Fresh Buying, Silver Stays Flat For Third Straight Session

Gold Jumps ₹550 On Fresh Buying, Silver Stays Flat For Third Straight Session

Canva Faces Temporary Outage In India; Users Report Of Issues With Saving and Editing Designs

Canva Faces Temporary Outage In India; Users Report Of Issues With Saving and Editing Designs

Real Estate Company Omaxe Buys 450-Acre Land In Indore To Develop Township At An Investment Of...

Real Estate Company Omaxe Buys 450-Acre Land In Indore To Develop Township At An Investment Of...

Sensex Ends 270 Points Higher On Late Buying, Gains Support From Asian Markets

Sensex Ends 270 Points Higher On Late Buying, Gains Support From Asian Markets

Gujarat Booms With 145% Increase In Taxpayer Base In Eight Years; Emerges As One Of India's...

Gujarat Booms With 145% Increase In Taxpayer Base In Eight Years; Emerges As One Of India's...