ICICI Bank, Kochhar reply to SEBI show-cause notices

Mumbai, September 18 

Markets watchdog  SEBI today said, ICICI Bank and Chanda Kochhar have replied to its show-cause notices on the probe into the alleged regulatory lapses by the bank's CEO-on-indefinite-leave in lending to Videocon group and her husband's business deals with the Dhoot family.

ICICI Bank and the business dealings of the Kochhar family have come under the regulatory glare of SEBI  and other agencies after a whistleblower has reported to the government agencies that the Kochhar family had some quid pro quo in its dealings with the now bankrupt Videocon group.

In FY 2012, the bank had, by allegedly flouting its own lending norms extended a Rs 3,250 crore loan to the Videocon group, which has since turned dud for the bank, which is though is not the lead lender.

Addressing the media after a board meeting here this evening, Tyagi, when asked about the ICICI Bank issue, said, "I think there was some reply to our show-cause notice, but I man not very sure about their consent application."     Whole Time Member Anant Barua joined the chairman saying, "yes they (the bank and Kochhar) have replied to the show-cause notices".

But when asked whether they have formally approached SEBI with a consent request, Barua clarified that "they have not formally filed the application."      The bank denied seeking consent settlement.

“We have submitted our responses to the show cause notices issued by SEBI . We would like to clarify that we have not filed any application for settlement," ICICI Bank spokesperson said in a statement. — PTI

What is consent mechanism…

It is an out-of-the-court process through which the SEBI settles cases of suspected wrongdoing by listed companies. It currently allows an alleged defaulter to settle cases without admission or denial of any wrongdoing in the capital market

Wilful defaulters not eligible, says SEBI 

• SEBI has decided to bar wilful defaulters, fugitive economic offenders and entities responsible for defaults that have “market wide impact” from settling proceedings
• Besides, the regulator would not consider any application for settlement which had been rejected earlier for the same alleged default
• The changes to the settlement mechanism were approved by the Board of SEBI at its meeting on Tuesday
• The SEBI (Settlement Proceedings) Regulations, 2018, provides for settling proceedings by issuing an order that can include monetary as well as non-monetary terms