As Icici Securuties Limited prepares to delist from the bourses, it is being reported by news portals that the minority shareholders of ICICI Securities are allegedly being coaxed by the officials of ICICI Bank to vote in favour of the proposal to delist. Under a scheme of arrangement, ICICI Bank seeks to delist ICICI Securities, through a share swap deal wherein public shareholders of ICICI Securities would receive 67 shares of ICICI Bank for every 100 shares of ICICI Securities.
The Economic Times has featured a story in this regard to outline the potential risk / regulatory scrutiny which the Bank may face. Various shareholders of ICICI Securities have shared information on social media platforms regarding getting a phone call from the ICICI Bank executives.
In this background Mr. Sumit Agrawal, Managing Partner of Regstreet Law Advisors and former SEBI Officer has shared his insights with The Economic Times.
He is of the view that “Seeking support for voting in a specific manner isn’t explicitly regulated or forbidden but is grounded in corporate governance principles and ensuring fairness in the process. SEBI possesses extensive authority to investigate such practices and, in response to any complaints, can implement heightened scrutiny on the voting process”
Mr. Sumit Agrawal further added that “Omnibus provisions of SEBI Act, LODR Regulations, and Delisting Regulations are usually interpreted in favour of transparency and fairness”
The article also features the expert views of Ms. Sonam Chandwani and Mr. Manu Rishi Guptha.
The Economic Times story is enclosed below and is also accessible at: https://lnkd.in/dVMmRUpz
Readers are welcome to send their views to Regstreet Law Advisors at info@regstreetlaw.com