ICICI Bank this week made an exchange disclosure informing its shareholders that it would be considering delisting of ICICI Securities, its broking subsidiary. It has also been reported that ICICI Bank is considering a share swap arrangement with ICICI Securities shareholders, where shareholders of ICICI Securities shall receive shares of ICICI Bank.
In light of the same, Mr. Rajesh Mascarenhas from The Economic Times has written an article titled “ICICI Securities shares soar over 11% as parent considers delisting”.
The article also features views of Mr. Sumit Agrawal, Managing Partner, Regstreet Law Advisors and former SEBI officer, who observed that, “The conversion of ICICI Securities equity into ICICI Bank’s shares, facilitated by the delisting of ICICI SECURITIES, falls under the special provisions for a subsidiary company getting delisted through a scheme of arrangement, where the listed holding company and the subsidiary company are in the same line of business. However, it needs to be seen how SEBI and Reserve Bank of India (RBI) ease the classification of banking and broking as the same line of business”
Readers are also welcome to send their views to Regstreet Law Advisors at info@regstreetlaw.com.