NCLT approves delisting of ICICI Securities, dismisses minority shareholders' petition

The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday approved the delisting application of ICICI Securities from the stock exchanges and also rejected objections filed by minority shareholders.

The NCLT in an oral order approved the Scheme of Arrangement for delisting of shares of ICICI Securities.

According to the scheme of arrangement, shareholders of ICICI Securities (ISEC) will get 67 shares of ICICI Bank for every 100 shares they hold.

The court also rejected objections filed by minority shareholders Quantum Mutual Fund and Manu Rishi Gupta.

Quantum Mutual Fund held 0.08% and Manu Rishi Gupta, a minority shareholder held 0.002% shares in ICICI Securities opposed the scheme.

The scheme was earlier approved by 93.8% equity shareholders of ICICI Securities.

Following delisting, ICICI Securities will become a wholly-owned subsidiary of the bank.

ICICI Securities, promoted by ICICI Bank, is the country's leading retail-led equity franchise, distributor of financial products and investment bank.

Meanwhile, ICICI Securities on Wednesday said it has settled a case with market watchdog SEBI pertaining to an alleged violation of regulatory norms after paying Rs 69.82 lakh.

The same was in relation to a settlement application submitted to SE in connection with the inspection of books and records for the merchant banking activities of the company, ICICI Securities said in a regulatory filing.

The observations were primarily related to the due diligence process to be followed by the company as a merchant banker, it said.

The company had submitted an application for settlement under Settlement Regulations in respect of the aforementioned matter with a view to avoid any protracted proceedings arising from Sebi's Show Cause Notice, it said.

Following the payment, a settlement order dated August 20, 2024, passed by Sebi has been received by the Company on the same day, it added.