ICICI Securities pays Rs 69.8 lakh to settle allegations of Merchant Banker Regulations violation

The merchant banker has also informed the market regulator about issuing caution letters to the officers-in-default.

ICICI Securities has settled allegations of violation of Public Issue Regulations and Merchant Banker Regulations by paying nearly Rs 70 lakh.

The merchant banker has also informed the market regulator about issuing caution letters to the officers-in-default.

In a settlement order dated August 20, the Securities and Exchange Board of India (Sebi) informed that the ICICI Securities, with merchant banker registration INM000011179, had been sent a showcause notice for violating certain provisions of Sebi (Merchant Bankers) Regulations.

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The violations included questionable site visit reports; failure to undertake due diligence to ensure that the object of the issue was supported by documentary evidencel; and contradictory statement in the DRHP and news article on the object of a public issue.

The showcause notice was dated October 31, 2023. The merchant banker submitted a settlement application dated November 13, 2023.

Thereafter, on January 22, 2024, ICICI Securities submitted an additional reply to the notice. Further, the banker requested for inspection of documents, which was concluded on February 2, 2024.

Meanwhile the banker's representative had met with the internal committee of Sebi on January 9 and Januay 19, 2024.

The committee recommended Rs 69,82,500 as an indicative amount for the settlement.

Sebi's High-powered Advisory Committee (HPAC) too recommended the same amount after meeting on March 4, 2024.

The panel of whole-time members approved the recommendations of HPAC on April, 19, 2024.

On Augut 9, 2024, the panel also took note of the action taken by ICICI Securities against its officers in default.