Sebi says ICICI Bank, other related entities have not filed for settlement

Regulator Sebi clarified on Wednesday that it has not received any settlement application from ICICI Bank or any other entity with respect to the probe into alleged regulatory lapses involving its CEO Chanda Kochhar, her husband and his business dealings.

Besides, the markets watchdog said that ICICI Bank and Kochhar have replied to the show cause notices issued by it.

ICICI Bank and the business dealings of the Kochhar family have come under the regulatory glare of Sebi and other agencies after a whistleblower reported to the government agencies that the family had some quid pro quo in its dealings with the now bankrupt Videocon group.

In FY 2012, the bank had, by allegedly flouting its own lending norms, extended a Rs 32.50 billion loan to the Videocon group, which has since turned dud for the bank.

"It is hereby clarified that ICICI Bank and Chanda Kochhar have filed replies to show cause notices issued by Sebi. It is further clarified that, Sebi has not received any settlement application from ICICI Bank or from any other entity related to the matter," the regulator said in a statement.

Earlier, the Securities and Exchange Board (Sebi) had issued show cause notices to ICICI Bank, Kochhar and others after its preliminary examination favoured initiating adjudication proceedings against them for alleged violation of listing disclosure norms regarding 'conflict of interest' in business dealings of her husband with Videocon Group.

The bank and Kochhar have been maintaining there had been no regulatory violations on their part and that she was not aware of specific business dealings of her husband.

As per Sebi's preliminary probe, Kochhar's husband Deepak has had many business dealings with the Videocon group over the past several years.

Besides, Deepak and Videocon chief Venugopal Dhoot were co-founders and promoters of NuPower, besides other associations.

The cases under scanner include significant loan exposure of the bank to Videocon way back in 2012 and the alleged involvement of the Kochhar family in restructuring of that loan.

Kochhar and her family members are also facing allegations of quid pro quo and conflict of interest with respect to the loan extended to an offshore arm of the Essar group.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel