(Reuters) – India’s market regulator is investigating possible insider trading among senior officials of IndusInd Bank amid significant accounting lapses by the lender, the Economic Times reported on Thursday.
The Mumbai-based lender reported earlier this month that it had discovered accounting discrepancies in the way it booked currency derivatives, going back at least six years, with an estimated impact of about $175 million.
The Securities and Exchange Board of India (SEBI) has sought information about trades executed by five senior officials while they were in possession of unpublished price-sensitive information of IndusInd, the newspaper said, citing two people close to the development.
SEBI is also examining whether IndusInd violated its disclosure norms, the report said.
The lender did not immediately respond to a Reuters’ request for comment.
It has appointed an independent firm to conduct an investigation into the lapses and the discrepancies, which have also led to concerns over governance at the bank. Reuters reported earlier this week that IndusInd had appointed Grant Thornton to conduct the review.
Shares of IndusInd have fallen over 27% since it first announced the lapses on March 10.
(Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)
