I-Sec delisting: Sebi vets complaints on outreach by ICICI
The Securities and Exchange Board of India (Sebi) is looking into allegations that employees of ICICI Bank Ltd had reached out to some shareholders of ICICI Securities Ltd to try and influence them ahead of a crucial vote in March.
The shareholders voted to delist ICICI Securities and merge it with its parent firm. More than 500 shareholders of ICICI Securities coordinated on WhatsApp and social-media platforms to lodge around dozens of complaints with Sebi, a person aware of the matter said.
“Sebi is currently examining multiple complaints. Once there is proper evidence, the regulator will initiate an investigation. What action Sebi will take is difficult to say,” the person said on the condition of anonymity.
Manu Rishi Guptha, a Bengaluru-based fund manager and a minority shareholder in ICICI Securities, said: “Investors have filed 60-70 complaints with Sebi and also complained on the SCORES platform.” SCORES is Sebi’s online platform for filing grievances. He added that the key allegations in these complaints are the violation of data privacy of its shareholders by ICICI Securities and the valuation at which the company is being delisted.
Guptha is leading a group of over 100 ICICI Securities shareholders who last month filed a class action suit with the National Company Law Tribunal (NCLT) against ICICI Bank Ltd’s proposal to delist ICICI Securities.
Mint reported earlier that employees of ICICI Bank had reached out to shareholders of ICICI Securities in the days leading up to the crucial shareholder meeting on 27 March, where it was decided to delist