ICICI Bank MD and CEO Chanda Kochhar gets SEBI notice in Videocon loan case

MUMBAI:  In a setback to ICICI Bank and its MD & CEO Chanda Kochhar, market regulator SEBI has initiated adjudication proceedings against them in the controversial Videocon loan case.

The bank, in an exchange filing on Friday, said the SEBI notice was issued on Thursday and that it will submit appropriate responses in accordance with regulations.

“The MD & CEO and the Bank received a notice from SEBI on May 24, 2018, under Rule 4(1) of SCR (Procedure for Holding Inquiry and imposing penalties by Adjudicating Officer) Rules requiring responses on matters relating to alleged non-compliance with certain provisions of the erstwhile Listing Agreement and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the bank said in the filing.

The notice has been issued based on information furnished by the bank and Kochhar to diverse queries made by SEBI concerning dealings between the bank and Videocon and certain dealings allegedly between Videocon Group and NuPower, “an entity in which Deepak Kochhar, spouse of MD & CEO has economic interests,” ICICI said.

As per SEBI norms, while holding an inquiry, the adjudicating officer can summon not only Chanda Kochhar, but also those acquainted with the facts and circumstances of the case to give evidence or to produce any document relevant to the matter.

The officer is also empowered to impose penalties, the quantum of which will be based on the amount of disproportionate gains or the amount of losses caused to investors and based on the repetitive nature of the default.