ICICI Bank looks to settle Chanda Kochhar controversy with Sebi; stock slips 2%

ICICI Bank share price slipped nearly 2 per cent on Friday after reports came that the private lender will file a consent petition with markets regulator Securities and Exchange Board of India (Sebi) to end the ongoing investigation against its CEO and MD Chanda Kochhar in Videocon loan case.

ICICI Bank stock dipped as much as 1.8 per cent to Rs 285.65 on the BSE. The board is looking to avoid prolonged adjudication proceedings and the bank is mulling options to file consent plea, the ET Now report added. 

In another news, ICICI Bank and Kochhar have reportedly sought more time to respond to a show-cause notice served by the Sebi. According to a news report, they have requested Sebi to share with them the documents on the basis of which the notice was served.  

“Sebi issued a 12-page show-cause notice to ICICI Bank and Chanda Kochhar on May 23. The notice, however, did not have adequate documents to support the allegations. Before filing an appropriate reply, evidence of alleged contravention of securities laws needs to be examined by the recipients,” reported Business Standard citing a person privy to the development.

There are allegations of involvement of Kochhar and her family members in a loan provided to Videocon group on a quid pro quo basis. It was alleged that Videocon Group pumped money into NuPower Renewables, a firm owned by Deepak Kochhar, husband of Chanda Kochhar.

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Sebi had served a notice on Kochhar last month on dealings of the bank with Videocon Group and Nupower.

The deadline to file the response was Thursday.