ICICI Securities minority investors to challenge delisting
NCLT) against ICICI Bank's bid to delist its broking arm from the Indian bourses.
The private lender's scheme of arrangement to delist ICICI Securities received approval from the subsidiary's public shareholders in a voting process last month.
Some individual investors of ICICI Securities have formed a 'joint action group' with a plan to object to this scheme of arrangement in the NCLT. According to a person familiar with the development, over 200 retail shareholders of the brokerage have already joined this group and have begun raising funds through crowdfunding. These shareholders have been asked to give a Power of Attorney, nominating Gupta as their representative to execute the legal proceedings. The group has yet to appoint lawyers to file the lawsuit.
Quantum Mutual Fund, which has opposed ICICI Bank's plan to delist ICICI Securities, is also considering legal action against the bank. «We are currently evaluating various options available to protect the interest of our investors,» said Ajit Dayal, founder of Quantum Advisors, sponsor of Quantum Mutual Fund, to ET.
The shareholders will likely challenge the special exemption for the delisting granted by the Securities and Exchange Board of India, said the person in the know quoted above.
The capital markets regulator has granted ICICI Bank exemption from the delisting regulation involving the requirement of the listed holding company and listed subsidiary being in the same line of business. An email query sent to Sebi did not elicit any response until
