A roadside vendor arranges fruits at a stall as pedestrians walk past a ICICI Bank Ltd. branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Bank Has Replied To Show-Cause Notice, Says SEBI

Markets regulator SEBI today said that the ICICI Bank Ltd. has replied to its showcause notice with respect to a probe into the alleged regulatory lapses involving its CEO Chanda Kochhar, her husband and his business dealings.

The Securities and Exchange Board of India Chariman Ajay Tyagi also said that he has no information about any settlement application filed by the bank. Later, a SEBI member clarified that the bank has not filed any formal application.

In a filing, the ICICI Bank informed the stock exchanges that it has submitted its response to SEBI’s show cause notice but has not filed any application for settlement. ICICI Bank and the business dealings of the Kochhar family has come under the regulatory lens of SEBI and other agencies.

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Earlier, the SEBI issued show cause notices to ICICI Bank, Kochhar and others after its preliminary examination favoured initiating adjudication proceedings against them for alleged violation of listing disclosure norms regarding 'conflict of interest' in business dealings of her husband with Videocon Group. The bank and Kochhar have been maintaining there has been no regulatory violation on their part and that she was not aware of specific business dealings of her husband.

As per SEBI’s preliminary probe, Chanda Kochhar's husband Deepak Kochhar has had many business dealings with Videocon Group over the last several years. Besides, Deepak Kochhar and Videocon chief Venugopal Dhoot were co-founders and promoters of NuPower, besides other associations.

The cases under scanner include the significant loan exposure of the bank to Videocon way back in 2012 and the alleged involvement of Kochhar's family members in the restructuring of that loan. Kochhar and her family members are facing allegations of quid pro quo and conflict of interest with respect to a loan extended to certain entities.

(PTI has corrected the story to incorporate ICICI Bank's statement)

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