ICICI Securities pays Rs 69.82 lakh to Sebi, set to delist from markets

ICICI Securities resolves Sebi case with Rs 69.82 lakh settlement, concurrently gains NCLT approval for delisting despite some objections from minority shareholders

ICICI Securities has paid Rs 69.82 lakh to the Securities and Exchange Board of India (Sebi) to settle a case related to alleged violations of regulatory norms. This development was disclosed by the company in a regulatory filing, where it noted that the case pertained to the inspection of its books and records concerning its merchant banking activities. The subsidiary of ICICI Bank Ltd is also moving ahead with its plans to delist from the stock market.

The observations from Sebi were focused on the due diligence process that ICICI Securities was required to follow as a merchant banker. In response, the company submitted a settlement application under Sebi’s settlement regulations to avoid prolonged legal proceedings following the market regulator's show-cause notice.

On August 20, 2024, Sebi issued a settlement order, officially closing the matter upon receipt of the settlement payment from ICICI Securities.

ICICI Securities to delist from stock exchange

In related news, ICICI Securities is also moving forward with its plan to delist from stock exchanges. 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’s decision, delivered on Wednesday, also dismissed objections from minority shareholders, including Quantum Mutual Fund and individual investor Manu Rishi Gupta, who held 0.08 per cent and 0.002 per cent of shares in ICICI Securities, 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 they hold. 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 equity franchises and a key player in the distribution of financial products and investment banking services. The company’s delisting is expected to enhance its operational alignment with ICICI Bank, further strengthening its market position.