Mumbai, June 8, 2025 – The Securities and Exchange Board of India (SEBI) has issued a corrigendum to its interim order dated May 28, 2025, in the ongoing insider trading probe involving entities associated with IndusInd Bank. The market regulator clarified that a key reference in the order — citing a “board note” as the basis for appointing audit firm KPMG — was incorrect and should be read as “engagement note.”
The correction was made through an official notification issued by SEBI Whole-Time Member Kamlesh C Varshney on June 6, 2025. The revised version of the order is to be served on all concerned parties, including the involved entities, stock exchanges, depositories, registrars, share transfer agents, and banks.
This change addresses scrutiny over the governance practices at IndusInd Bank. The original order had implied a formal approval by the board for KPMG’s appointment in February 2024, raising questions about the role of the bank’s leadership in the insider trading matter.
Responding to questions about board accountability during a recent media interaction, Reserve Bank of India (RBI) Governor stated that while the resignation of the bank’s CEO was appropriate, expecting the entire board to resign would be “unreasonable.”
The interim order from SEBI had sparked concerns about transparency in the bank’s internal processes, especially around how and why KPMG was brought in during a sensitive period.
The corrigendum is seen as an effort to ensure procedural accuracy in SEBI’s investigation, while also clarifying the extent of the bank board’s involvement in the appointment decision.