Description

SEBI has modified restrictions on Arun Khurana following compliance with impounding amount as per SAT order, allowing trading in securities except IndusInd Bank Limited shares.

Summary

SEBI has modified its directions against Arun Khurana (PAN: ABBPK3785A) in the matter of insider trading in IndusInd Bank Limited scrip. Following compliance with Para 61(i) of the original SEBI order dated May 28, 2025 (Order No. WTM/KV/ISD/ISD-SEC-5/31437/2025-26) and as per SAT orders dated September 25, 2025 and October 10, 2025, the restrictions have been modified. The entity is now permitted to buy, sell or deal in securities except for IndusInd Bank Limited shares.

Key Points

  • Arun Khurana (PAN: ABBPK3785A) was previously restrained from buying, selling or dealing in securities until further orders
  • The entity has complied with the impounding amount requirement as per Para 61(i) of the SEBI order
  • Directions in clauses (iii), (iv), (v), (vi), and (vii) have ceased to apply upon crediting of impounding amount
  • Direction at clause (ii) has been modified to allow trading in all securities except IndusInd Bank Limited (INDUSINDBK)
  • The modification is in accordance with SAT order dated September 25, 2025 read with SAT order dated October 10, 2025
  • This circular updates the previous NSE circular no. NSE/INVG/68237 dated May 28, 2025

Regulatory Changes

The SEBI restrictions against Arun Khurana have been modified from a complete trading ban to a partial restriction:

  • Previous restriction: Complete ban on buying, selling or dealing in securities, either directly or indirectly
  • Modified restriction: Trading allowed in all securities except IndusInd Bank Limited shares
  • The modification became effective after compliance with the impounding amount requirement
  • The consolidated list of debarred entities is available on NSE website at: https://www.nseindia.com/regulations/member-sebi-debarred-entities

Compliance Requirements

  • NSE members must take note of the modified restrictions
  • Members must ensure compliance with the updated directions
  • Trading in IndusInd Bank Limited shares by or on behalf of Arun Khurana remains prohibited
  • Trading in other securities by Arun Khurana is now permitted
  • Members should refer to the consolidated list of debarred entities on NSE website for updated information
  • For queries, members should contact dl-invsg-all@nse.co.in

Important Dates

  • May 28, 2025: Original SEBI order (WTM/KV/ISD/ISD-SEC-5/31437/2025-26) and NSE circular (NSE/INVG/68237) issued
  • September 25, 2025: SAT order passed
  • October 10, 2025: Supplementary SAT order passed
  • October 24, 2025: Current NSE circular issued (Circular Ref. No: 524/2025)

Impact Assessment

Market Impact: Medium - The modification affects trading restrictions on one specific entity in relation to one specific stock (IndusInd Bank Limited). The partial lifting of restrictions allows the entity to participate in the broader market while maintaining restrictions on the specific scrip involved in the insider trading matter.

Operational Impact: The modification reduces the scope of trading restrictions while maintaining accountability in the specific case. Members need to update their systems to reflect the partial restriction - allowing general trading but blocking transactions in INDUSINDBK for this specific PAN. The case demonstrates SEBI’s approach of proportionate restrictions following compliance with remedial measures.

Impact Justification

Updates existing SEBI restrictions on specific entity following compliance with impounding order; allows trading in all securities except IndusInd Bank shares