Sebi probing charges of 'coerced' voting to delist broking arm of ICICI
Sebi) is examining allegations made by some minority shareholders of ICICI Securities that they were coerced by the relationship managers (RMs) of its parent ICICI Bank to vote in favour of a proposal to delist the stock broking arm. These small investors have also moved the company law tribunal against the bank with similar allegations.
The Delhi bench of the tribunal will hear the matter on Monday.
«The RMs would have been asked by some senior management personnel of the bank to woo the subsidiary's shareholders to vote in favour of the delisting proposal,» said a person familiar with the regulator's thinking. «Sebi is looking into the allegations. Call data records of people involved in this matter will also be examined.» Emails sent to ICICI Bank and Sebi remained unanswered.
About 72% of ICICI Securities' public shareholders voted in favour of the scheme of arrangements and subsequent delisting.
Unlike an ordinary resolution where promoters can participate, a delisting proposal comes under a special resolution where promoters can't vote. For the special resolution to go through, the number of votes cast by public shareholders in favour of it should be twice that of those against it.
While a section of ICICI Securities' shareholders opposed the delisting citing unfavourable valuations in the deal, ICICI Bank came under fire for allegedly coaxing the broking arm's shareholders to support the private lender's proposal to delist the broking and investment banking arm.
In their complaint to Sebi, the retail
