SEBI warns ICICI Bank for ‘influencing’ shareholders

The capital market regulator has warned the bank to be careful in future and improve its compliance standards to avoid action under the provisions of SEBI Act, 1992.
ICICI bank ATM
ICICI bank ATM (File | EPS)

NEW DELHI: The Securities and Exchange Board of India (SEBI) has snubbed ICICI Bank for coaxing shareholders of ICICI Securities (I-sec) and trying to influence them to vote in favour of delisting of the latter.

The capital market regulator has warned the bank to be careful in future and improve its compliance standards to avoid action under the provisions of SEBI Act, 1992.

The regulator undertook an investigation based on complaints of some shareholders of I-Sec, who alleged the bank in the pretext of an outreach programme advised them to vote in favour of delisting of I-Sec, the investment services arm of ICICI Bank.

The bank told Sebi that the outreach programme was meant for ensuring maximum participation of I-Sec shareholders in the voting process. It admitted that bank officials reached out to those shareholders of I-Sec.

However, some shareholders of I-Sec complained that the bank officials asked them to not only vote in favour of the delisting but also share the screenshots of the voting. The Sebi after its investigation found the outreach programme inappropriate.

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