 "Quantum Mutual Fund moves NCLAT against delisting of ICICI Securities")
Quantum Mutual Fund has filed an appeal in the National Company Law Appellate Tribunal, Delhi (NCLAT), against the delisting of ICICI Securities Ltd.
Dismissing objections raised by minority shareholders, the National Company Law Tribunal (NCLT) Mumbai had, on August 21, approved the delisting of ICICI Securities Ltd from the stock exchanges.
ICICI Securities shareholders will receive 67 ICICI Bank Ltd shares for every 100 shares they hold, as per the approved scheme.
Justice Virendra Singh G Bisht and technical member Prabhat Kumar dismissed the applications of Quantum Mutual Fund and investor Manu Rishi Guptha, who objected to the proposed delisting of ICICI Securities.
ICICI Securities told the tribunal that those opposing the delisting have no locus standi, as the proviso to Section 230(4) of the Companies Act states that any objection to a scheme of arrangement under Section 230 shall be made only by persons holding at least 10 per cent of equity or 5 per cent of the total outstanding debt as per the latest audited financial statement.
Quantum Mutual Fund and Guptha hold 0.08 per cent and 0.002 per cent of the paid-up equity share capital of ICICI Securities, respectively.
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ICICI Securities, an affiliate of ICICI Bank, argued that the two applications should be dismissed as they were against the principle of shareholder democracy. It said that the delisting proposal had been approved by 93.82 per cent in value of equity shareholders of ICICI Securities.
Minority shareholders told the tribunal in Delhi that ICICI Securities had breached shareholder privacy and administration rules by sharing shareholder details with ICICI Bank. They alleged that employees of ICICI Bank called and misled shareholders to vote in a particular way in the name of "spreading awareness."
Manu Rishi Guptha had earlier told Business Standard, "We will appeal and won't allow the injustice to fester."
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(With inputs from PTI)