ICICI Prudential AMC, Shah settle case with Sebi

The Securities and Exchange Board of India (Sebi) on Thursday said that ICICI Prudential Asset Management Company, and its chief Nimesh Shah settled a probe into alleged violation of mutual fund norms over their investments in the initial public offering (IPO) of the fund house’s sister concern ICICI Securities. While the fund house has paid Rs 89.9600000, Shah has given Rs 6.800000 towards settlement fees, Sebi said in a consent order. Under Sebi’s consent mechanism, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt. “The pending adjudication proceedings initiated against applicants...in respect of the... alleged violations against the applicants namely; ICICI Prudential Asset Management Company (AMC) and Nimesh Shah, are disposed of,” said Sebi. ICICI Securities had, in March this year, launched its IPO of 7.720000000 equity shares to raise a little over Rs 4,0000000000. ICICI Prudential AMC applied for and was allotted about 1.230000000 shares with an investment of Rs 6400000000 under five of its schemes. Of this amount, Rs 4000000000 was applied for on the first day of the IPO, and the balance Rs 2400000000 on the last day.