Sebi is looking into allegations of “coerced” voting to delist ICICI Securities

The Securities and Exchange Board of India (Sebi) is currently probing allegations from minority shareholders of ICICI Securities who claim they were coerced by ICICI Bank’s relationship managers to support delisting. These investors filed similar complaints with the company law tribunal. The Delhi bench will address the matter soon.

According to newspaper reports the Securities and Exchange Board of India (Sebi) is currently probing allegations from minority shareholders of ICICI Securities who claim they were coerced by ICICI Bank’s relationship managers to support delisting. These investors filed similar complaints with the company law tribunal. The Delhi bench will address the matter soon.

Approximately 72% of ICICI Securities’ public shareholders voted for the delisting proposal, requiring a special resolution. Unlike ordinary resolutions where promoters participate, special resolutions like delisting exclude their votes, necessitating double approval from public shareholders.

While some shareholders opposed the delisting, citing unfavourable valuations, ICICI Bank faced criticism for allegedly swaying support. Retail shareholders accused ICICI Bank’s agents of misleading tactics, including urging them to click the assent button on the voting portal.

Sebi also received a complaint from Quantum Mutual Fund regarding ICICI Securities’ valuation, although Sebi may not intervene.

Under the proposed scheme, ICICI Securities’ shareholders would receive 67 ICICI Bank shares for every 100 held, a ratio contested by investors, who argue it undervalues ICICI Securities. Small shareholders petitioned the tribunal, alleging voting fraud and seeking nullification.