Videocon loan: SEBI sends notice to ICICI Bank, Chanda Kochhar
Mumbai, May 26 (IBNS): Market regulator Securities and Exchange Board of India (SEBI) has sent a notice to ICICI Bank Ltd and its Managing Director Chanda Kochhar, starting proceedings against the institution for non-disclosure of information in the controversial videocon loan case, reports said.
The bank told NSE on Friday that Sebi has sent it and Chanda Kochhar a notice alleging violation of Listing Obligation and Disclosure Requirements (LODR) and for not making adequate disclosures.
“The MD & CEO and the Bank received a notice from SEBI on May 24, 2018, under Rule 4(1) of SCR (Procedure for Holding Inquiry and imposing penalties by Adjudicating Officer) Rules 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 said in the filing.
The notice has been issued based on information furnished by the bank and Kochhar to diverse queries made by SEBI concerning dealings between the bank and Videocon and certain dealings allegedly between Videocon Group and NuPower, “an entity in which Deepak Kochhar, spouse of MD & CEO has economic interests,” ICICI said.
The CBI has launched a preliminary investigation into Rs 3,250 crore loan ICICI Bank had extended to Videocon in 2012 and the possible role of Chanda Kochhar's husband -- Deepak Kochhar.
Reports have alleged that Videocon chairman Venugopal Dhoot invested Rs 64 crore in Nu Power Renewables, a firm owned by Deepak Kochhar after Videocon secured a loan from a consortium of banks, including ICICI.
ICICI has, however, claimed that it was part of a consortium of lenders that extended the facility to Videocon.