The Securities Appellate Tribunal (SAT)'s order reveals that the SEBI collected a staggering 1.7 terabytes (TB) of email data from the bank as part of an ongoing insider trading investigation involving senior executives. The disclosure surfaced during an appeal by Arun Khurana, a former Whole-Time Director (WTD) of the bank.
To map the flow of Unpublished Price Sensitive Information (UPSI), SEBI executed a massive data sweep covering 26 officials and 14 specific email IDs. This digital repository was subjected to intensive keyword-based searches to identify patterns and communication leaks that may have preceded critical bank disclosures.
The investigation was triggered by IndusInd Bank's previous reporting regarding derivatives accounting, a period during which SEBI alleges internal information was used for unfair gain. The regulator has already taken significant enforcement actions, impounding Rs 14.39 crore in alleged ill-gotten gains and placing a bar on Khurana.
Procedural Friction over Data Access
The sheer volume of the data-equivalent to millions of documents-has sparked a debate over investigative fairness. Khurana's appeal sought broader access to this "email dump" to mount a defense. However, the SAT has currently sided with the regulator's procedural timeline.
The Tribunal ruled that the appellant is not entitled to full access to the massive data set at this stage. According to the SAT, the right to inspect such evidence generally matures after a Show-Cause Notice (SCN) is officially issued.
While the impounding of funds marks a significant milestone, the broader investigation remains active. SEBI is currently in the process of finalizing its findings, with a decision on the issuance of a formal SCN still pending.
What Had Happened
The Serious Fraud Investigation Office had launched an investigation into the accounting discrepancies of IndusInd Bank in December 2025, whose cumulative impact was seen at around Rs 2,000 crore. The private lender had said it has a received a letter from the SFIO regarding the probe under Section 212 of the Companies Act, 2013, seeking relevant information.
IndusInd Bank had earlier informed that information related to its accounting of internal derivative trades, certain unsubstantiated balances in "other assets" and "other liabilities" accounts, and micro-finance interest income shared with the SFIO in June.
ALSO READ: SFIO Initiates Probe Into IndusInd Bank Accounting Discrepancy Case
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
