October 9, 2025

Mumbai shook with a blockbuster financial scandal involving IndusInd Bank (IBL)! The wife of a senior IBL official jumped into the stock market frenzy by trading shares of Kesoram Industries in 2023, right when she got secret info about UltraTech planning to buy the cement giant. This insider trading move broke many rules and triggered a fierce investigation. The official, who no longer works with the bank, was deeply connected with several big corporate clients during regular meetings. It was during these chats with Kesoram – an important client – that he got a whiff of the secret takeover talks. An internal probe revealed the woman purchased Kesoram shares worth over ₹38 crore and earned a smooth profit of ₹3.26 crore. But wait, that’s not all! The official’s secret deals stretched beyond Kesoram. Using his close family members, he snagged shares of other companies that borrowed from IndusInd Bank. These sneaky trades pocketed a massive gain of more than ₹32 crore. Plus, he didn’t keep this goldmine all to himself; some top bank colleagues were also tipped off. A juicy email dated November 6, 2023, surfaced where the official informed his seniors that during a meeting with Kesoram, he learned that JM Financial was hired to advise on selling Kesoram to a big player. The likely buyer? UltraTech! Just weeks later, on November 30, UltraTech’s board approved the merger plan with Kesoram. Interestingly, the official also dabbled in buying and selling IndusInd Bank’s equity derivatives back in 2021, hinting at a pattern of capitalizing on inside info. Now, banks often handle secret, price-sensitive information about clients called unpublished price-sensitive information (UPSI). SEBI’s strict rules say everyone dealing with UPSI, including bank officials and their close relatives, must follow tight trading codes. This official clearly fell under SEBI’s 'designated person' category. Inside the bank, this issue stirred big talks, including emails between the company secretary and audit committee members debating about 'connected persons' and 'insiders.' When reporters asked IndusInd Bank about actions taken, a spokesperson said, "The Bank investigates insider trading allegations and takes the appropriate actions based on the Bank's internal policies. In this regard, the Bank has made, and will continue to make, disclosures as required under law. Further, we refer to the ex-parte interim order issued by Sebi on 28 May 2025 (the 'interim order') which stated amongst others that a detailed examination by Sebi with respect to insider trading (against various suspects) is already underway. Accordingly, since the regulator is investigating these matters, it would not be appropriate for the Bank to respond to these queries or reports." IndusInd Bank, now with a new CEO, already faced a big jolt after exposing hidden foreign currency losses and profit inflation through sharp accounting. Several senior officials, who knew about the messy accounts and sold shares before the scandal broke, quietly exited on a sour note. This insider trading scandal only adds spice to IndusInd's ongoing troubles.

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Tags: Indusind bank, Insider trading, Kesoram industries, Ultratech, Sebi investigation, Stock market scam,