Appeal Against ICICI Securities Delisting Likely To Be Heard Soon, Mentioning Approved

The appeal against the NCLT's approval of ICICI Securities Ltd.'s delisting has been mentioned at the appellate company law authority at New Delhi and has been approved. The appeal is likely to be heard this week, according to people familiar with the matter.

The appeal was filed by minority shareholders, who alleged misconduct by ICICI Bank Ltd. employees during the delisting process. Previously, the NCLT had approved ICICI Securities' delisting plan, which involved exchanging 67 ICICI Bank shares for every 100 ICICI Securities shares held. The delisting was approved by 93.8% of ICICI Securities' equity shareholders, following a shareholder vote.

However, Quantum Mutual Fund, holding a 0.08% stake, and Manu Rishi Gupta, a minority shareholder with a 0.002% stake, had raised objections. They accused ICICI Bank employees of exerting undue influence during the voting process. Despite these claims, the NCLT dismissed their concerns and cleared the path for the delisting.

Meanwhile, a related case challenging the Securities and Exchange Board of India's exemption from the reverse book-building process, granted to ICICI Securities, is pending before the Bombay High Court. This case is scheduled to be heard on Oct. 21 and will be presided over by a new judge. However, the new bench that is supposed to hear the case is yet to be seen.

In the high court case it was previously directed that SEBI must disclose the exemption letter to the party challenging it. However, the court had directed the letter to be kept confidential.

On the other hand, in a similar case filed before the company law tribunal at Ahmedabad, the bench had directed the markets regulator to disclose the said exemption letter. However, in this order, the condition of anonymity has not been imposed yet.

Both the NCLAT appeal and the Bombay High Court case signal that the delisting of ICICI Securities may face further legal hurdles in the coming months.