SEBI colluded with ICICI Securities on delisting, Quantum Mutual tells NCLAT
This story was originally published at 22:46 IST on 14 October 2024
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NEW DELHI – Quantum Mutual Fund, a minority shareholder of ICICI Securities, on Monday told the National Company Law Appellate Tribunal that the Securities and Exchange Board of India colluded with the financial broking firm in regard to the latter’s delisting. The appellate tribunal was hearing a plea by minority shareholders against an order of the Mumbai bench of the National Company Law Tribunal to approve ICICI Securities' delisting plan. The appellate tribunal will next hear the case Tuesday.
Quantum Mutual Fund and an investor, Manu Rishi Gupta, had objected to the proposed delisting of ICICI Securities on the two benches of the tribunal. They had highlighted concern regarding the depressed valuation and share-swap ratio of ICICI Securities, saying the swap adversely affected minority shareholders. Quantum Mutual Fund and Gupta hold 0.08% and 0.002%, respectively, of the paid-up equity share capital of ICICI Securities. They also questioned the fairness of the deal, especially given the stock's low price relative to its potential.
On Monday, citing a SEBI letter, Quantum Mutual Fund said SEBI had granted ICICI Bank an exemption to give it certain flexibility on Regulation 37 of market regulator's delisting regulations. Contesting this, ICICI Securities said SEBI's letter could not be challenged before the National Company Law Tribunal or National Company Law Appellate Tribunal.
As per the delisting scheme, ICICI Bank will issue 67 shares for every 100 shares of the brokerage held by public shareholders. The scheme of arrangement envisages the cancellation of around 25.2% shares of ICICI Securities held by public shareholders and making it a wholly owned subsidiary of ICICI Bank. After the approval from the Mumbai bench on Aug. 21, the Ahmedabad bench of the National Company Law Tribunal on Wednesday approved ICICI Securities Ltd's delisting plans and rejected objections by certain minority shareholders who had opposed it.
Monday, shares of ICICI Securities closed 0.3% higher at INR 832.30 and those of ICICI Bank closed 0.7% higher at INR 1,231.75 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
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