New Delhi: 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 business dealings of her husband with 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, an official said.
The adjudication process will convene formally soon after taking into account the replies to the show-cause notices issued by Sebi to ICICI Bank, Ms Kochhar and others in this matter, the official added.
Besides Sebi probe, ICICI Bank’s board has also constituted an “independent enquiry” and Ms Kochhar has gone on leave till completion of this enquiry.
According to a regulatory filing by the bank last week, Ms Kochhar will continue as MD and CEO, though the group’s life insurance arm head Sandeep Bakshi has been appointed as a whole time director and COO. Mr Bakshi will report to Ms. Kochhar and will handle the day-to-day operations in her absence.
The bank has maintained that its board has full faith in Kochhar. According to sources, Sebi’s preliminary examination findings are based on enquiries made by the regulator in the matter involving Ms Kocchar, ICICI Bank and Videocon Group.