Amid charges of insider trading by the executives of IndusInd Bank, the Securities and Exchange Board of India (Sebi) is looking into “any egregious violations” by the Bank’s employees. While the Reserve Bank of India (RBI) too is looking into the issue from a banking sector regulatory perspective, the capital markets regulator is also probing the matter under its remit, Sebi Chairman Tuhin Kanta Pandey said.
“The RBI (Reserve Bank of India) is looking into that. Whatever SEBI has to do in relation to, whatever SEBI’s remit is, SEBI is doing. It is RBI’s remit but if there are any egregious violations by anyone, in its capacity SEBI is looking into it,” Pandey said at an Assocham event.
On May 21, IndusInd Bank’s board had said that it suspects the occurrence of fraud against the Bank and the involvement of certain employees having a significant role in the accounting and financial reporting of the Bank.
Earlier on March 10, IndusInd Bank had disclosed that an internal review of its derivative portfolio revealed a potential 2.35 per cent “adverse impact” on its net worth. Later, on April 29, weeks after IndusInd Bank disclosed accounting lapses and losses of nearly Rs 2,000 crore in its derivatives portfolio that triggered a rout in its shares, the bank’s Managing Director & CEO Sumant Kathpalia had resigned with immediate effect. IndusInd Bank had earlier announced the resignation of deputy CEO Arun Khurana.
© The Indian Express Pvt Ltd