SEBI probes ‘egregious violations’ by IndusInd Bank’s senior management

India’s market regulator SEBI is investigating serious violations by senior management at IndusInd Bank amid allegations of accounting discrepancies and internal fraud. 
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Securities and Exchange Board of India (SEBI) is looking into “egregious violations” by senior management of IndusInd Bank, which is facing significant challenges related to accounting discrepancies and suspected internal fraud.

“RBI is looking into whatever Sebi has to do in relation to whatever Sebi’s remit is. If there are any egregious violations by anyone in their capacity, Sebi is looking into it,” SEBI Chairman Tuhin Kanta Pandey told reporters on the sidelines of an event organised by industry chamber ASSOCHAM here. On Wednesday, IndusInd Bank’s board said it suspected the involvement of certain employees in the fraud and directed the bank to report the matter to investigative agencies and regulatory authorities.

NSE IPO

The capital market regulator officials simultaneously indicated that the much-awaited Initial Public Offering (IPO) of National Stock Exchanges (NSE) is likely to get green light soon.

“All the outstanding issues will be resolved and we will move forward…NSE and Sebi are talking, they are resolving the issues and I’m very hopeful, it will be cleared and will move forward,” Pandey said.

NSE needs to get an NOC (No Objection Certificate) from the regulator. It made an application in August last year. Once it gets that, it will file a Draft Red herring Prospectus (DRHP) with SEBI. NSE’s listing has been delayed due to several factors, including investigations into the exchange’s preferential treatment of certain entities.

F&O Expiry date

In response to a different question, Pandey said that the market regulator will come up with a circular on F&O expiry day this month. “Right now, whatever framework is there, we will be issuing a post-consultation paper and we will be analysing the comments. The committees have met and soon we will be issuing a clarification within this month,” he said.

SEBI, in its consultation paper, also proposed that exchanges should seek SEBI’s approval before launching or modifying any contract expiry or settlement day. “Every exchange will continue to be allowed one weekly benchmark index options contract, on their chosen day (Tuesday or Thursday),” the regulator had proposed. This is to provide optimal spacing between expiries across exchanges while avoiding the choice of either the first day of the week or the last day as an expiry day.

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Published on May 22, 2025