SEBI Ends Investigation Against ICICI Securities After Rs 70 Lakh Settlement

The Securities and Exchange Board of India has ended its investigation into alleged violations of merchant banking regulations by ICICI Securities Ltd. after the latter paid a settlement amount totaling Rs 69.8 lakhs in May 2024.

The case involved allegations of questionable site visit reports, failure to conduct due diligence to ensure the object of the issue was supported by documentary evidence, and contradictory statements in the Draft Red Herring Prospectus and a related news article.

The settlement process began in January 2024, when the company's authorised representatives met with SEBI's internal committee. Following these discussions, SEBI's High Powered Advisory Committee approved the settlement terms.

On Aug. 9, 2024, SEBI's Panel of Whole-Time Members noted that the company issued caution letters to the officers-in-default in accordance with the settlement order. After receiving the settlement amount and the company's actions against the officers-in-default, SEBI has formally disposed of the proceedings against the company.

However, SEBI's order comes with a caveat. The regulatory body has reserved the right to reopen proceedings if any representations made by the company during the settlement process are later found to be untrue.