Videocon case| ICICI Bank may file consent plea with SEBI: Report
This follows the reissuance of show-cause notice in November by the SEBI’s newly appointed adjudicating officer was appointed by SEBI.
November 28, 2019 / 04:57 PM IST
ICICI Bank may file a consent plea with the Securities and Exchange Board of India (SEBI) in relation to allegations of disclosure violations by former CEO Chanda Kochhar in transactions with Videocon, Business Standard reported.
This follows the reissuance of show-cause notice in November by the SEBI’s newly appointed adjudicating officer. A source told BS that ICICI Bank is looking to settle the matter via the consent route rather than contesting it, while also considering other legal options.
Moneycontrol could not independently verify the report.
A consent application allows the aggrieved party (the bank in this case) to settle, with a more lenient penalty and without any admission or denial of guilt. After the notice is served, the party has 60 days to file the plea, which in this case would expire in December.
The bank had until now denied all allegations in the matter, stating that it had been unaware of the alleged conflict of interest in the case. And while the plea does not indicate any admission of wrongdoing, it is, however, a departure from the private lender’s previous position.
SEBI’s notice is based on a preliminary report, wherein it concluded that there was a conflict of interest in the bank’s transactions with Videocon. Chanda Kochhar’s failure to disclose her husband’s dealings with Videocon and her non-compliance with listing agreement prompted the regulator to begin proceedings.
ICICI Bank did not respond to the paper’s queries.