SEBI SUMMONED ANAND DAS, COMPANY SECRETARY OF INDUSIND BANK, IN MAY 2026 FOR SEBI PIT VIOLATION, MISSING SDD ENTRIES, UPSI RECORD TAMPERING -HEAVY PENALTY LIKELY TO BE IMPOSED

 SEBI SUMMONED ANAND DAS, COMPANY SECRETARY OF INDUSIND BANK, IN MAY 2026 FOR SEBI PIT VIOLATION, MISSING SDD ENTRIES, UPSI RECORD TAMPERING -HEAVY PENALTY LIKELY TO BE IMPOSED

BACKGROUND

ANAND DAS, COMPANY SECRETARY OF INDUSIND BANK,has recently been summoned and investigated by SEBI for alleged violations under the Prohibition of Insider Trading (PIT) Regulations, including missing entries in the Structured Digital Database (SDD), tampering of unpublished price-sensitive information (UPSI) records, and facing heavy penalties.

 This highlights SEBI’s increasing crackdown on compliance failures in corporate governance.

REASONS FOR SEBI’S ACTION

MISSING SDD ENTRIES

Under Regulation 3(5) & 3(6) of PIT Regulations, companies must maintain a Structured Digital Database (SDD) capturing all UPSI events with date, time, and audit trails.

Failure to record even a single UPSI event is treated as a serious compliance lapse.

UPSI RECORD TAMPERING

SEBI requires the database to be non-tamperable and preserved for at least 8 years.

Any manipulation or deletion of UPSI records is considered evidence of misconduct.

HEAVY PENALTIES

SEBI can impose monetary fines, market bans, and even criminal prosecution under Section 15G of the SEBI Act.

 

In past cases, senior officials have been barred from the securities market for insider trading violations.

INDUSIND BANK CASE

SEBI summoned Anand Das, Company Secretary of IndusInd Bank, in May 2026.

Allegations: A zonal head traded shares of client companies while in possession of UPSI.

SEBI investigated how the secretarial and compliance departments handled whistleblower complaints and UPSI records.

COMPLIANCE REQUIREMENTS FOR COMPANY SECRETARIES

·       Maintain SDD with strict access controls.

·       Capture all UPSI events (nature, date, time).

·       Ensure audit trails are intact and tamper-proof.

·       Certify quarterly compliance to SEBI.

RISKS & PENALTIES

VIOLATION	POSSIBLE SEBI ACTION
MISSING SDD ENTRIES	Monetary penalty, compliance warning
UPSI TAMPERING	Criminal liability, market ban
INSIDER TRADING	Prosecution, imprisonment, fines
NON-COOPERATION IN PROBE	Suspension of company secretary license

ACTIONABLE TAKEAWAYS

FOR COMPANIES:

·       Conduct regular internal audits of SDD.

·       Train compliance staff on PIT regulations.

·       Implement whistleblower mechanisms to detect violations early.

FOR COMPANY SECRETARIES:

·       Ensure personal accountability in certifying compliance.

·       Avoid shortcuts in UPSI documentation.

·       Cooperate fully with SEBI investigations to mitigate penalties.

# YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,