SEBI notice to ICICI Bank, CEO Kochhar

In its statement, the bank stated that “appropriate responses would be submitted to SEBI in accordance with regulation.” Sandeep Parekh, founder, Finsec Law Advisors, and a former executive director of SEBI, said the capital market regulator could impose a monetary penalty on the entities to whom the notice has been sent. “The notice has been sent for non-compliance with listing regulations and the regulator can impose only a monetary penalty. If in case the regulator wants to take any other remedial action like debarment then it will have to send a separate notice,” said Mr. Parekh. The case pertains to a loan of Rs. 3,2500000000 given by ICICI Bank to Videocon Group in 2012. In March, the Central Bureau of Investigation disclosed that it had started a preliminary inquiry into the loan and is looking into an alleged link between the loan and the funding of NuPower Renewables, a company founded by Mr. Kochhar and others. The CBI has already examined some officials of ICICI Bank in connection with the probe and has also questioned Rajiv Kochhar, the brother-in-law of Ms. Kochhar. Meanwhile, the PE has named Videocon Group promoter Mr Dhoot, Deepak Kochhar and unidentified others. Apart from the CBI, the Enforcement Directorate is also probing the matter.