Sebi’s observations focused on the due diligence process that ICICI Securities was required to follow as a commercial bank. In response, the company filed an application for settlement under Sebi norms to avoid lengthy legal proceedings following the show-cause notice from the market regulator.
On August 20, 2024, Sebi issued a winding-up order, officially closing the matter following receipt of the settlement payment from ICICI Securities.
ICICI Securities to delist from the stock exchange
In related news, ICICI Securities is also going ahead with its delisting plan. The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the company’s delisting proposal, rejecting objections raised by minority shareholders.
The NCLT decision, issued on Wednesday, also dismissed objections by minority shareholders, including Quantum Mutual Fund and individual investor Manu Rishi Gupta, who held 0.08 per cent and 0.002 per cent of ICICI Securities shares respectively. Despite their opposition, the Scheme of Arrangement was supported by 93.8 per cent of ICICI Securities’ equity shareholders.
Under the approved scheme of arrangement, shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares held by them. This delisting move is part of a broader strategy to integrate ICICI Securities more closely with its parent company, ICICI Bank. Following the delisting, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank.
ICICI Securities, promoted by ICICI Bank, is one of India’s leading retail-focused securities franchises and a key player in the distribution of financial products and investment banking services. The delisting of the company is expected to enhance its operational alignment with ICICI Bank, further strengthening its position in the market.
First published: August 21, 2024 | 14:08 IS
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