Sebi issues administrative warning to ICICI Bank over 'inappropriate' outreach programmelive bse livense live Volume Todays L/H More ×Acting on several complaints by shareholders of ICICI Securities, some of who received calls by ICICI Bank seeking favourable vote for the delisting scheme, market regulator SEBI has issued an administrative warning on the outreach.
An exchange filing by ICICI Bank on June 6 cited regulator's observation that said, "The heightened outreach programme on the last day of voting citing holidays/weekend appears inappropriate".
However, investor complaints revealed that some officials had 'gone beyond the outreach programme' and made repeated calls, and even sought screenshots of voting.
There was a clear conflict of interest.."As many as 83.8 percent of the public institutional shareholders and 32 percent non-institutional shareholders of ICICI Bank had voted in favour of ICICI Securities' delisting, the bank had said a regulatory filing on March 27.
The regulator warned ICICI Bank to be careful and expected it to improve the compliance standards to avoid such instances, failing which Sebi saidaction may be initiated.
Sebi issues administrative warning to ICICI Bank over 'inappropriate' outreach programme
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Acting on several complaints by shareholders of ICICI Securities, some of who received calls by ICICI Bank seeking favourable vote for the delisting scheme, market regulator SEBI has issued an administrative warning on the outreach.
An exchange filing by ICICI Bank on June 6 cited regulator's observation that said, "The heightened outreach programme on the last day of voting citing holidays/weekend appears inappropriate".
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ICICI Bank's exchange filing cited Sebi's circular, which said the outreach programme was undertaken to explain the scheme of delisting of ICICI Securities and to maximize shareholders' participation. However, investor complaints revealed that some officials had 'gone beyond the outreach programme' and made repeated calls, and even sought screenshots of voting.
According to one of the call recordings, a shareholder of ICICI Securities was told that opting for the scheme would be beneficial, a clear breach of the remit of the outreach programme, Sebi's letter revealed.
Sebi's letter said, "... bank being a promoter/ interested party, providing its perspective on the proposed transaction to shareholders of I-Sec cannot be said to be providing a balanced factual position. There was a clear conflict of interest.."
As many as 83.8 percent of the public institutional shareholders and 32 percent non-institutional shareholders of ICICI Bank had voted in favour of ICICI Securities' delisting, the bank had said a regulatory filing on March 27.
The regulator warned ICICI Bank to be careful and expected it to improve the compliance standards to avoid such instances, failing which Sebi said
action may be initiated.
The bank has been advised to place the actions taken in this regard before the next meeting and forward SEBI a brief on the discussions within 10 days of the Board meeting.
