Sebi raps ICICI Bank over lobbying for I-Sec delisting


MUMBAI: Markets regulator Sebi has instructed ICICI Bank to take motion towards officers who exceeded their authority by encouraging shareholders to vote in favour of delisting ICICI Securities. The regulator has additionally requested the financial institution to offer an motion taken report back to the financial institution’s board and submit a abstract of the board discussions to the regulator.
In a letter dated June 6 addressed to the financial institution’s MD & CEO Sandeep Bakhshi, Sebi issued an administrative warning to ICICI Bank.This adopted the conclusion of an investigation into the financial institution’s outreach programme associated to the delisting of fairness shares of I-Sec. The warning requires ICICI Bank to reinforce its compliance requirements and stop the recurrence of such an occasion.
Sebi’s letter was shared with the inventory exchanges after buying and selling hours. Earlier, shares of ICICI Bank had closed marginally up at Rs 1,110 on Thursday.

The investigation was prompted after a number of complaints from I-Sec shareholders. These complaints alleged that ICICI Bank officers had made quite a few calls and despatched messages urging shareholders to vote in favour of the delisting scheme. Some shareholders have been even requested to offer screenshots of their votes. Upon examination, Sebi discovered that ICICI Bank officers had certainly gone past a mere outreach programme.
The markets regulator discovered that ICICI Bank’s outreach programme – meant to maximise shareholder participation – was excessively persistent. It concerned repeated calls and requests for voting screenshots from shareholders. Additionally, officers have been recorded informing shareholders that opting for the delisting scheme can be useful. This raised considerations a few battle of curiosity, as ICICI Bank holds over 74% shareholding in I-Sec, making it a significant promoter. Sebi additionally criticised the heightened outreach efforts on the final day of voting, together with throughout holidays and weekends, as inappropriate.
The financial institution’s justification for aiding shareholders who have been supposedly unaware of the e-voting course of was deemed pointless by Sebi. This overreach by ICICI Bank officers went past the remit of the outreach programme and raised important regulatory considerations Shareholders of ICICI Bank and its subsidiary, ICICI Securities, have accepted the proposal to transform the latter right into a wholly-owned subsidiary. As of March 2024, ICICI Bank held 74.7% possession of its securities arm, whereas public shareholders held the remaining 25.3% following an IPO in 2018.
Despite resistance from a piece of retail buyers, the proposal garnered important assist from institutional shareholders, leading to 72% of public shareholder votes favouring the proposal and surpassing the required two-thirds majority.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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