“Kochhar’s presence on the board of ICICI Securities, while legally compliant, exposes the company to the same risks and the possibility of legal and regulatory sanctions. We believe she should be reappointed on the board only after all the charges have been cleared.”
"Kochhar’s appointment is compliant with law and no concern has been identified in the profile, attendance, performance and time commitment of Kochhar.”
With ICICI Bank having
80 per cent stake in ICICI Securities, analysts expect smooth passage for the resolution. But the ICICI Securities
shareholders, meanwhile, are a jittery lot as they have lost 36 per cent of their investment since its listing in April. Another ICICI group firm, ICICI Prudential Mutual Fund
is also facing the stock market regulator bailing out ICICI Securities
IPO with unitholders’ money.
A ICICI Prudential MF spokesperson said the fund has complied with SEBI’s advice and addressed the matter to their satisfaction. This was after ICICI Prudential Mutual Fund
credited back to the five schemes that had invested Rs 2.4 billion in ICICI Securities on the last day of the latter’s Initial Public Offer (IPO) of equity to bailout the issue. The fund house had to sell Rs 2.4 bn worth of shares and the final amount was credited back to the schemes after adjusting for the movement in share price from the issue price. The fund has taken a hit of Rs 1 billion due to the sale.