Yet to receive reply from ICICI Bank on Kochhar issue: Sebi
MUMBAI: Sebi Chairman Ajay Tyagi on Thursday said the regulator is yet to receive reply from the ICICI Bank on allegations involving its CEO Chanda Kochhar.
Besides Sebi, various other agencies, including the CBI, are looking into alleged lapses involving Kochhar and her family members with respect to loans extended by the lender to certain entities, including the Videocon group.
"We are yet to receive reply from the ICICI Bank," Tyagi said while briefing reporters after Sebi board meeting here.
The cases under scanner include the bank's Rs 3,250 crore loan to Videocon Group in 2012 and the involvement of Kochhar family members in restructuring of the loan.
Kochhar and her family members are facing allegations of quid pro quo and conflict of interest with respect to a loan extended to certain entities.
On Monday, the ICICI Bank announced that Kochhar has decided to go on leave till the completion of an external enquiry into alleged conflict of interest in extending loans to some corporates like Videocon and named Sandeep Bakhshi as the chief operating officer.
Meanwhile, Sebi on Thursday also said it is looking into alleged violations of code of ethics in the ICICI Securities IPO and has sought details.
ICICI Securities had in March reduced the size of its initial public offer (IPO) to a little over Rs 3,500 crore after the sale elicited a sluggish response, especially from high networth individuals.
On a question about whether Sebi was conducting any investigation in the alleged violation of code of ethics in ICICI Securities IPO, chairman Ajay Tyagi said, "We are looking into that, we have sought some information from them and we are yet to get their reply."
There are allegations that ICICI AMC took a late stake in the company's IPO.
The size of the initial public offer -- the fourth one from the ICICI Group -- was reduced in the wake of sluggish response.
The price band for the offer was fixed at Rs 519-520 per share.
ICICI Securities shares got listed on the bourses on April 4, this year. MUMBAI: Regulator Sebi on Thursday decided to amend the norms governing initial public offers, takeovers and buybacks as well as harmonise shareholding patterns in market infrastructure institutions and cap the tenure of managing directors at stock exchanges.
The board of Sebi, at its meeting here, also cleared a draft of proposed amendments to the IPO framework, including reduction in time period for announcement of price band and financial disclosure requirements as well as bringing down the minimum anchor investor size in SME IPOS to Rs 2 crore.
Besides, the category of 'sub-brokers' would be done away with and instead such entities would have to migrate to 'authorised persons' or 'trading members' category.
Implementing another round of reforms agenda in the securities market, entities going for IPO can announce the price band two days before commencement of the offer whereas the current time period is five days.
In the case of public and rights issues, financial disclosures have to be made only for three years instead of five years requirement at present.
Among others, re-stated and audited financial disclosures in the offer document to be made only on consolidated basis.
The changes have been decided upon as part of streamlining the regulations pertaining to Issue of Capital and Disclosure Requirements (ICDR).
With respect to ICDR, Sebi Chairman Ajay Tyagi said it is rationalisation of disclosure requirements, definition of promoter group as well as group companies and reduction in time-frame for announcement of IPO price band.
Overhauling regulations for ownership and governance norms for market infrastructure institutions (MIIS), the watchdog is looking at harmonising the shareholding limit across all such entities whereas there are restrictions now. Stock exchanges, clearing corporations and depositories are MIIS.
"Eligible domestic and foreign entities may be permitted to hold up to 15 per cent shareholding in case of depository and clearing corporation, as is the case for stock exchanges.
"Multilateral and bilateral financial institutions, as notified by the government, have also been recommended to hold up to 15 per cent in an MII," it said in a release.
Further, managing directors at the MIIS can have only up to two terms of five years each or up to 65 years of age, whichever is earlier.
In the case of public interest directors, the tenure can be a maximum of three terms of three years each or or up to seventy-five years of age, whichever is earlier, and these directors can not have more than two terms in one MII.
Further, a three-year cooling off period would be applicable for public interest directors before they can become a shareholder director in the same MII or a director in an MII'S subsidiary.
According to Sebi, entities would be given additional time for upward revision of open offer price till one working day before the commencement of the tendering period. Besides, the regulator has decided to introduce a definition for buyback period.
These changes are also aimed at simplifying the lan- guage and removing redundant provisions in the existing framework for takeover and buyback.
Further, the concept of sponsor has been removed in case of depositories, with existing sponsor entities being allowed up to five years to reduce their respective shareholding.
"Threshold for submission of draft letter of offer to Sebi in case of rights issues to be increased to Rs 10 crore as against the earlier prescribed Rs 50 lakh," Sebi said in a release.
The regulator said the concept of immediate relative would be retained as against the proposed concept of 'relative', while the shareholding threshold for identifying promoter group has been revised to 20 per cent from 10 per cent.
Apart from providing more clarity on definition of group companies, the regulator has expanded the ambit of anchor investor category.
In order to capture the risks faced by a clearing corporation, it has been decided to adopt a risk-based approach towards computation of net worth for them.
The regulator would come out with a consultation paper for amendments to norms with respect to entities undertaking third-party assignment under securities laws. MUMBAI: Markets regulator Sebi on Thursday approved the establishment of National Centre for Financial Education (NCFE) as a firm under the Companies Act.
The approval was announced after the board meeting of the regulator here.
The Securities and Exchange Board of India (Sebi) would also subscribe to 30 per cent of the paid up capital of NCFE amounting to Rs 30 crore.
"The board approved the establishment of National Centre for Financial Education as a company under Section 8 of the Companies Act, 2013 limited by shares," Sebi said in a release.
Section 8 pertains to formation of companies with charitable objectives.
"The board also approved subscription to 30 per cent of the paid up capital of the company amounting to Rs 30 crore, by Sebi," it added.
NCFE is co-promoted by Sebi, Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (Irdai) and Pension Fund Regulatory and Development Authority (PFRDA).