ICICI Securities paid Rs 69.82 lakh to the Securities and Exchange Board of India (SEBI) to settle a complaint involving alleged regulatory infractions. The company announced this event in a regulatory filing, stating that the case involved a review of its books and records relating to its merchant banking services. The securities are also moving on with their plans to delist from the stock market.
Sebi's views were particularly concerned with the due diligence procedure that ICICI Securities was expected to undertake as a merchant banker. To avoid extended legal processes following the market regulator's show-cause notice, the company filed a settlement application under Sebi's settlement norms. On August 20, 2024, Sebi issued a settlement order, officially terminating the case following receipt of the settlement cash from ICICI Securities.
ICICI Securities will delist from the stock exchange.
In related news, ICICI Securities is proceeding with its strategy to delist from stock exchanges. The Mumbai bench of the National Company Law Tribunal (NCLT) approved the company's delisting application, rejecting minority shareholders' objections.
The NCLT's ruling, issued on Wednesday, also dismissed arguments from minority shareholders, including Quantum Mutual Fund and individual investor Manu Rishi Gupta, who own 0.08 percent and 0.002 percent of ICICI Securities, respectively. Despite their resistance, the Scheme of Arrangement was approved by 93.8% of ICICI Securities' equity shareholders.
Under the approved Scheme of Arrangement, ICICI Securities stockholders will receive 67 shares of ICICI Bank for every 100 shares they own. This delisting is part of a larger effort to integrate ICICI Securities more closely with its parent firm, ICICI Bank. Following the delisting, ICICI Securities will be a wholly owned subsidiary of ICICI Bank.
ICICI Securities, which is owned by ICICI Bank, is one of India's top retail-focused stock franchises and a major player in the distribution of financial products and investment banking services. The company's delisting is expected to improve operational alignment with ICICI Bank, hence boosting its market position.
