ICICI shares take a hit on rumours of lawsuit

Angered by rumours that a US brokerage firm has filed a USD one billion lawsuit against it,ICICI Bank approached the investigating authorities.

Angered by rumours that a US brokerage firm has filed a USD one billion lawsuit against it,ICICI Bank today approached the investigating authorities and regulator Sebi for intervention and action against those behind it.

The rumours saw ICICI Bank share prices fall by about five per cent to Rs 846.95 in intra-day trading on the Bombay Stock Exchange,but bounced back to close 6.45 per cent up at Rs 884.05.

Sources said that the Economic Offences wing is questioning two sub-brokers in this connection.

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“The bank has lodged a complaint with regulatory and law enforcement agencies,” a statement from ICICI Bank said.

It may be recalled that in October 2008,ICICI Bank shares had tanked sharply to a low of Rs 282.15 on rumours about the financial health of the bank,but within a short while the shares staged recovery.

“There are baseless rumours circulating in the market through SMS and emails about a lawsuit filed against ICICI Bank in the US,” ICICI Bank informed the Bombay Stock Exchange.

According to a spokesperson of the bank,the rumour was spread during the early trading hours.

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In a statement,the bank categorically denied any such lawsuit by any US brokerage firm and state that these are malicious and unfounded rumours.

The spokesman said the complaint has been filed with the market regulator Sebi and an FIR has been lodged with Mumbai police on the matter.

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