Description

Securities Appellate Tribunal order dated October 10, 2025 in Appeal No. 412 of 2025 modifying SEBI's direction regarding deposit of impounding amount in insider trading matter involving Arun Khurana and IndusInd Bank Limited.

Summary

The Securities Appellate Tribunal (SAT), Mumbai has passed an order dated October 10, 2025 in Appeal No. 412 of 2025 filed by Arun Khurana against SEBI in an insider trading matter related to IndusInd Bank Limited scrip. The Tribunal has modified the deposit arrangement for the impounding amount, allowing the appellant to deposit 50% of the amount in a fixed deposit in the appellant’s name with a lien marked in favor of SEBI, instead of direct deposit with SEBI as originally directed.

Key Points

  • Appeal filed by Arun Khurana against SEBI’s ad-interim ex-parte order in insider trading case involving IndusInd Bank Limited
  • Original SEBI order directed appellant to deposit impounding amount in fixed deposit with lien marked with SEBI
  • SAT’s earlier order dated September 25, 2025 directed appellant to deposit 50% of the amount with SEBI
  • Tribunal has now permitted deposit in fixed deposit in appellant’s own name with lien in favor of SEBI
  • SEBI’s counsel raised no objection to the modified arrangement
  • Appellant’s counsel undertook to deposit the amount within four weeks from October 10, 2025
  • Case represents enforcement action under insider trading regulations

Regulatory Changes

No new regulatory changes introduced. This order pertains to procedural modification in an ongoing enforcement matter under existing SEBI (Prohibition of Insider Trading) Regulations.

Compliance Requirements

  • Arun Khurana required to deposit 50% of the impounding amount in a fixed deposit within four weeks from October 10, 2025 (deadline: November 7, 2025)
  • Fixed deposit must be in appellant’s name with lien marked in favor of SEBI
  • Deposit arrangement ensures SEBI’s interest while providing appellant control over the deposit instrument

Important Dates

  • October 10, 2025: Date of SAT order modifying deposit arrangement
  • September 25, 2025: Date of earlier SAT order directing 50% deposit
  • November 7, 2025: Deadline for deposit (four weeks from October 10, 2025)

Impact Assessment

Market Impact: Limited direct impact on IndusInd Bank stock or broader market operations. The matter relates to past trading activity by a specific individual.

Regulatory Impact: Demonstrates SEBI’s continued enforcement of insider trading regulations and the appellate process available to parties subject to SEBI orders. The modification shows tribunal’s willingness to balance regulatory interests with appellant’s rights.

Compliance Impact: Reinforces importance of insider trading compliance for individuals with access to unpublished price-sensitive information (UPSI). Market participants should note that SEBI actively pursues insider trading violations with monetary penalties including impounding of illegal gains.

Procedural Significance: The order illustrates flexibility in deposit arrangements during appellate proceedings while protecting SEBI’s interests through lien mechanism. This may set precedent for similar cases regarding deposit modalities.

Impact Justification

High-profile insider trading enforcement action involving IndusInd Bank with tribunal modifying SEBI's deposit directions. While significant from regulatory perspective, direct market impact is limited as it concerns specific individual and past trading activity.