Lawstreet Journal

SAT sets aside SEBI orderimposing Rs. 10 lakhs fine against ICICI Bank

Lawstreet Journal 15 Jul 2020 9:57pm

Image courtesy: Lawstreet Journal Judiciary SAT sets aside SEBI orderimposing Rs. 10 lakhs fine against ICICI Bank

On Tuesday, 14th July 2020, The Securities Appellate Tribunal (SAT) has set aside SEBI’s order which imposed a fine of Rs. 10 lakhs on ICICI Bank for delayed disclosure about a binding agreement signed by the lender with Bank of Rajasthan in 2010. Market regulator SEBI imposed a fine of Rs. 10 lakhs in September 2019, on ICICI Bank for disclosure lapses which include delayed disclosures of the binding contract signed with Bank of Rajasthan. The ICICI Bank moved the court against the order. It also referred to the unreasonable delay of eight years in issuing the show cause notice and nine years in passing the impugned order. 

The Tribunal, in an order passed on 8th July 2020, stated that though there are laches, that by itself in the peculiar circumstances of the case, will not vitiate the proceedings but definitely the penalty amount of Rs 10 lakh imposed on the bank cannot be sustained and deserves to be substituted by a lesser penalty. “... while upholding the impugned order on merits, we modify the penalty imposed on the appellant to only a warning which will meet the ends of justice in the given facts and circumstances of the matter.” It added 

Early on the morning of 18th May 2010, the Executive Director of ICICI Bank signed a binding contract with the dominant shareholders of Bank of Rajasthan recommending the merger of the two lenders. Disclosures surrounding the amalgamation were provided to the stock exchanges on the evening of the same day.… Continue Reading...

Tagged: ICICI Bank   SEBI  
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