What does law say on discrimination business – What does law say on discrimination business

Citing sources in a media report, it has been said that the regulator is investigating that when senior officials sold the company shares in the open market, did they have unpublished price-sensitive information. According to the report, the market regulator has sought information about the deal made by senior officials.

According to the stock exchange revelations, between May 2023 and June 2024, IndusInd Chief Officer Sumant Kathpalia sold around 9,50,000 shares worth Rs 134 crore, while Deputy CEO Arun Khurana sold 5,50,000 shares worth Rs 82 crore. These shares were part of his employee Stock Options Plan (ESOP). The concerns increased due to these sales, as IndusInd shares have fallen by more than 30 percent, as the lender has suffered a loss due to his derivative exposure.

In such a situation, the question is whether the share sales by IndusInd officials can make them trouble? Mumbai -based corporate lawyer Supreme Vaskar said, “If a top official has traded in shares while in the possession of UPSI, it could be potentially a violation of SEBI’s discriminatory business criteria, if the transactions do not fall under specific exceptions set by norms.”

In addition, if the value of the transaction is more than Rs 10 lakh under SEBI rules, then interiors are required to disclose any change in shareholding. It is also the responsibility of the company to ensure that the inner people have appropriate expectations to reach UPSI during the period. Not following these revelations and compliance requirements can also be considered a violation.

First Published – March 27, 2025 | 10:46 pm IST