ICICI Bank: SEBI favours adjudication

A preliminary examination by SEBI has favoured adjudication proceedings against ICICI Bank and its CEO Chanda Kochhar for alleged violation of listing disclosure norms regarding ‘conflict of interest’ in her husband’s business dealings with the Videocon Group.

ICICI Bank may face a penalty of up to Rs. 25 crore under the relevant SEBI regulations for such lapses, while the fine for Ms. Kochhar may go up to Rs. 1 crore besides other penal actions, a senior official said.

The adjudication process would convene formally soon after taking into account the replies to the show-cause notices issued by the markets regulator to ICICI Bank, Ms. Kochhar and others in this matter, the official added.

Independent inquiry

Besides SEBI probe, the ICICI Bank’s board had also constituted an “independent inquiry” and Ms. Kochhar had gone on leave till the completion of the enquiry. According to a regulatory filing by the bank, Ms. Kochhar would continue as MD and CEO.