SEBI Exemption On ICICI Securities Delisting Submitted In Sealed Cover

Market regulator SEBI's exemption letter given to ICICI Securities relaxing its delisting requirements was submitted by the ICICI Bank before the company law tribunal on Thursday. However, it was presented in a green sealed cover. 

The Ahmedabad bench of National Company Law Tribunal had directed the bank to submit the exemption letter in September. However, in today's hearing, the letter submitted was not filed through an affidavit. It was submitted before the tribunal bench in a taped cover to avoid leak of the sensitive information in the letter. 

Meanwhile, ICICI Securities shareholders raised objections on why the letter was in a sealed cover.

However, the bench did not hear the submissions on laws regarding documents submitted in sealed covers.

Interestingly, in a similar case, the Bombay High Court had directed Securities and Exchange Board of India to disclose the letter to the petitioner challenging its validity. However, the high court had directed to keep the letter confidential.

Meanwhile, the Mumbai bench of NCLT has approved the ICICI Securities delisting and has rejected the objections of the minority shareholders against it. The appeal against this approval is also being heard by the National Company Law Appellate Tribunal in New Delhi.

Under the NCLT Mumbai approved scheme, ICICI Securities shareholders will receive 67 ICICI Bank Ltd. shares for every 100 shares they hold. The scheme had earlier secured approval from 93.8% of ICICI Securities' equity shareholders.

Quantum Mutual Fund and Manu Rishi Gupta, who held 0.08% and 0.002% of ICICI Securities shares respectively, had opposed the scheme. They had alleged undue influence by ICICI Bank employees on the voting process.