Business

Videocon Case: Sebi Sends Notice To ICICI Bank CEO Chanda Kochhar

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| May 26 , 2018 , 12:55 IST

The Market regulator SEBI has issued a notice to ICICI Bank CEO Chanda Kochhar and its managing director due to the non-disclosure of the dealings of the bank with Videocon Group in which Chanda Kochhar had approved a loan in 2012 to Venugopal Dhoot's Videocon Group in return for a favour received by NuPower Renewables, an entity in which Mr Deepak Kochhar has alleged economic interests.

According to the markets regulator, adequate disclosures were not made by ICICI Bank to the stock markets relating to the case. So, the notice has been issued under the Rule 4(1) of SCR (Procedure for Holding Inquiry and imposing penalties by Adjudicating Officer) Rules 2005.

As according to the securities market regulator's LODR (Listing Obligations and Disclosure requirements regulations) all listed entities are mandated to immediately disclose relevant and important information to stock exchanges.

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The allegations were denied by the ICICI Bank's management on the grounds that it was not only ICICI Bank but a consortium of 20 banks and financial institutions that sanctioned in 2012 credit facilities to the Videocon Group.

At that time these credit facilities were granted for a debt consolidation programme and for its oil and gas capital expenditure programme aggregating to approximately Rs. 40,000 crore.

ICICI Bank said in a regulatory filing "Appropriate responses would be submitted to Sebi by the Bank in accordance with regulation,"

Not only the Central Bureau of Investigation (CBI) is conducting an enquiry in the case but also the income tax department is also tracking the Videocon case closely.