SEBI amends IndusInd Bank order, names top executives amid ongoing probe

Mumbai, June 7 The Securities and Exchange Board of India (SEBI) has issued a corrigendum to its interim order against IndusInd Bank Limited, replacing a key reference to clarify the nature of documents involved in the bank’s internal dealings.

The market regulator said the term ‘board note’ used in its earlier order would now be read as ‘engagement note’.

This correction comes as SEBI continues to investigate accounting irregularities at the private sector lender.

Earlier, the regulator had mentioned that global consulting firm KPMG was appointed by IndusInd Bank in February 2024 based on a ‘board note’.

However, it has now clarified that KPMG’s appointment was actually based on an ‘engagement note’, a less formal document usually used for assigning tasks to external consultants.

The SEBI probe revealed that the former Chief Financial Officer of IndusInd Bank had stated in January 2024 that a consultant was being hired to assess the financial impact of previously identified discrepancies.

KPMG later reported a financial loss of Rs 2,093 crore linked to these issues.

Despite the scale of the impact, SEBI noted that the bank neither disclosed these findings to the stock exchanges by March 10, 2025, nor marked the information as unpublished price-sensitive data until March 4, 2025.

KPMG reportedly sought further discussions with bank officials to verify the numbers, including specific accounting entries.

In its interim order, SEBI named four senior executives for their alleged roles in the matter: Arun Khurana, former Executive Director and Deputy CEO; Sushant Sourav, Head of Treasury Operations; Rohan Jathanna, Head of GMG Operations; and Anil Marco Rao, Chief Administrative Officer for Consumer Banking Operations.

These individuals have been barred from buying, selling, or dealing in securities in any form until further notice.

Meanwhile, on Friday, RBI Deputy Governor J Swaminathan said that the situation at IndusInd Bank is stabilising and ‘everything is more or less on track.’

RBI Governor Sanjay Malhotra also commented that the bank has taken significant steps to improve its accounting standards and is performing well overall.

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