A preliminary examination by regulator Sebi has favored adjudication proceedings against ICICI Bank and its CEO Chanda Kochhar for alleged violation of disclosure norms regarding “conflict of interest” in the business dealings of her husband with the Videocon group, suggest media reports
The bank is likely to face a penalty of up to Rs 25 crore under the Securities Exchange Board of India regulations for such lapses. The report also pointed out that the fine for Chanda Kochhar may go up to Rs 1 Cr. According to an official, the adjudication process will formally convene soon, after taking into account the replies to the show cause notices issued by SEBI to ICICI Bank, Kochhar and others in this matter.
We also reported that on June 19th ICICI Bank’s MD and CEO Chanda Kochhar went on leave till an independent probe into the allegations over conflict of interest is completed.
This decision comes after the ICICI board members met on June 18th and took this step. During the board meeting, Sandeep Bakshi, CEO of ICICI Prudential Life Insurance will run the bank during the absence of Chanda Kochhar.
Image Credits: Hindustan Times