Description

Securities Appellate Tribunal modifies SEBI's deposit requirement in insider trading case involving Arun Khurana and IndusInd Bank, allowing 50% deposit in fixed deposit with lien.

Summary

The Securities Appellate Tribunal (SAT) Mumbai issued an order on October 10, 2025 in Appeal No. 412 of 2025 filed by Arun Khurana against SEBI. The Tribunal modified the terms of deposit required in a SEBI insider trading enforcement matter involving IndusInd Bank Limited. While SEBI’s original ex-parte order required deposit of the full impounding amount in a fixed deposit with lien marked to SEBI, the Tribunal’s September 25, 2025 order required only 50% deposit with SEBI. The appellant requested permission to place the 50% amount in a fixed deposit in the appellant’s name with a lien marked in favour of SEBI, which was granted with a four-week deadline for compliance.

Key Points

  • Securities Appellate Tribunal modified SEBI’s deposit requirement in insider trading case involving Arun Khurana and IndusInd Bank Limited
  • Original SEBI ex-parte order required full impounding amount to be deposited in fixed deposit with lien to SEBI
  • SAT’s September 25, 2025 order reduced requirement to 50% of the amount
  • Tribunal granted appellant’s request to deposit 50% in fixed deposit in appellant’s name with lien in favour of SEBI
  • Appellant undertook to deposit the amount within four weeks from October 10, 2025
  • SEBI’s counsel had no objection to the modified arrangement

Regulatory Changes

No new regulatory changes introduced. This order relates to case-specific relief in an ongoing enforcement proceeding.

Compliance Requirements

  • Arun Khurana must deposit 50% of the impounding amount in a fixed deposit within four weeks from October 10, 2025 (deadline: November 7, 2025)
  • The fixed deposit must be in the appellant’s name with a lien marked in favour of SEBI
  • This arrangement replaces SEBI’s original requirement of full deposit directly with SEBI

Important Dates

  • October 10, 2025: SAT order date
  • November 7, 2025: Deadline for deposit (four weeks from October 10, 2025)
  • September 25, 2025: Date of prior SAT order reducing deposit requirement to 50%

Impact Assessment

This order has limited market impact as it pertains to a specific enforcement case against an individual. However, it demonstrates the Tribunal’s willingness to modify deposit arrangements in insider trading matters while maintaining SEBI’s security interest through lien arrangements. The case serves as a precedent for how deposit requirements may be structured in insider trading enforcement actions, balancing regulatory interests with appellant rights. Market participants facing similar enforcement actions may reference this order when negotiating deposit terms during appeal proceedings.

Impact Justification

High severity due to insider trading enforcement action, but low market impact as it relates to specific individual case. Medium importance for compliance precedent on deposit arrangements.