FPJ News Service New Delhi

Capital market regulator The Securities and Exchange Board of India on Wednesday barred former IndusInd Bank CEO Sumant Kathpalia, former deputy CEO and three other senior officials from participating in the securities markets over allegations of insider trading.

Other officials restrained by the market regulator are Arun Khurana, executive director and deputy CEO of the bank at the time of the alleged violation; Sushant Sourav, head-treasury operations;  Rohan Jathanna, head-GMG operations; and Anil Marco Rao, chief administrative officer-Consumer Banking Operations. All the Noticees, viz. Noticee Nos. 1 to 5 are hereby restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, until further orders, Sebi’s interim order said.

The market regulator, in its order said, “The bank accounts of Noticees are impounded to the extent of 19.78 core, and Noticees are directed to open fixed deposit account (s) in their names so as to credit or deposit the aforesaid impounding amount with a lien marked in favour of SEBI and the amount kept therein shall not be released without permission from Sebi.”

Banks, where Noticees are holding bank accounts, are directed that no debits shall be made, without permission of SEBI, in respect of the bank accounts held by Noticees, except for the purposes of transfer of funds to the fixed deposit account(s) as stipulated. Depositories shall also be directed that no debit shall be made, without permission of Sebi, in respect of the demat accounts held by Noticees. However, credits, if any, into the accounts may be allowed. Banks and the depositories are directed to ensure that all the aforesaid directions are strictly enforced.