Quantum Mutual Fund Files Case Against ICICI Securities
There are ongoing proceedings against ICICI Securities in NCLT Delhi, involving allegations that ICICI bank unduly influenced shareholders to support the delisting of the broking unit.
Quantum Mutual Fund has taken legal action against ICICI Securities Ltd. in the National Company Law Tribunal in Mumbai. This comes after the class action suit against ICICI Securities, heard in some capacity at NCLT Delhi.
Quantum Mutual Fund lodged the case on March 30, and it was officially registered by the tribunal on June 3, according to the NCLT website. Parth Jain is listed as the advocate representing Quantum in the matter.
Meanwhile, there are ongoing proceedings against ICICI Securities in NCLT Delhi, involving a lawsuit that alleges ICICI Bank Ltd. unduly influenced shareholders to support the delisting of its broking subsidiary, ICICI Securities, from Indian stock exchanges.
Shareholders claimed that ICICI Bank employees, rather than ICICI Securities staff, contacted public shareholders to persuade them to vote in favour of the delisting. They allege that a PowerPoint presentation was used to influence shareholders, exploiting many shareholders' lack of technological expertise.
However, the NCLT bench challenged this argument, questioning how it could be determined as to which shareholders were technologically savvy enough to understand the issues. When the shareholder's advocate, Kaushik Chatterjee, could not provide a satisfactory explanation, the bench dismissed the argument, saying that shareholders are expected to be intelligent enough to understand such issues. The bench stated that if shareholders suffer financial loss, it is their responsibility.
This case is set for further hearing on July 3.
Additionally, the Securities and Exchange Board of India is investigating allegations that ICICI Bank employees contacted ICICI Securities shareholders to influence their votes on the delisting proposal in March.
The markets regulator is gathering information on how ICICI Bank canvassed shareholders before the vote. SEBI has been made a party to a class-action lawsuit filed by minority shareholders and will decide on further steps based on preliminary inquiries. ASG N Venkatraman is representing SEBI in the Delhi class action matter.
