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Sunday, July 22, 2018

Yet to receive reply from ICICI Bank on Kochhar issue: Sebi Chairman Ajay Tyagi

ICICI’s board has denied any wrongdoing, highlighting that the loan was underwritten in accordance with the bank’s credit standards and was extended as part of a consortium involving over 20 banks.

By: ENS Economic Bureau | Mumbai | Published: June 22, 2018 12:03:35 am
Yet to receive reply from ICICI Bank on Kochhar issue: Sebi Chairman Ajay Tyagi Securities and Exchange Board of India (SEBI) Chairman, Ajay Tyagi. (PTI Photo/File)

Sebi Thursday said it is yet to receive a reply to a notice it served to ICICI Bank MD and CEO Chanda Kochhar for non-compliance of the listing agreement in the Videocon case which relates to alleged dealings involving the Videocon group and NuPower Renewables Pvt Ltd, an entity in which Deepak Kochhar, spouse of the bank’s MD and CEO, has economic interests.

“We are yet to receive reply from the ICICI Bank,” said Sebi Chairman Ajay Tyagi. He said that the bank has requested for inspection of certain documents before it replies to the regulator.

On May 24, the MD & CEO and the bank received a notice from Sebi requiring responses on matters relating to alleged non-compliance with certain provisions of the erstwhile Listing Agreement and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the bank had said.

On March 29, 2018, The Indian Express had first reported on records that showed Videocon group promoter Venugopal Dhoot provided crores of rupees to a firm promoted by Deepak Kochhar and two relatives six months after the Videocon Group received Rs 3,250 crore as loan from ICICI Bank in 2012. The bank had admitted that Chanda Kochhar did not recuse herself from a credit committee meeting which decided to give loan to the Videocon group in 2012.

A significant portion of the loan has since become non-performing. ICICI’s board has denied any wrongdoing, highlighting that the loan was underwritten in accordance with the bank’s credit standards and was extended as part of a consortium involving over 20 banks.

Tyagi also said that Sebi is probing into a large investment made by ICICI Prudential Mutual Fund in the IPO of ICICI Securities Ltd. A large chunk of the Rs 3250 crore IPO was bought by its affiliate ICICI MF. “We are looking into it and we had sought some information from them. They are yet to reply,” said Tyagi.

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