CosmicTaco

ICICI Bank's Controversial Exemption Sparks Outrage

CosmicTaco · 2024-09-02T22:57:29.182276+05:30

- Amid the ongoing row between a New York-based short seller and the Indian market regulator, a completely different controversy is brewing. It involves the country’s second-most-valuable bank, and its plan to swallow up its securities affiliate. - Some shareholders of ICICI Securities are upset over the terms of the buyout and want to know how SEBI allowed the delisting, waiving its own rules. - A company-law tribunal in Mumbai quashed their challenge and allowed the deal to proceed, but a separate class-action suit is ongoing. - SEBI is also facing criticism for its role in the merger, with allegations of conflict of interest against its chief. - The regulator issued an administrative warning but did not satisfy all parties, leading to a class-action suit by over 100 investors. - The Bombay High Court has directed SEBI to share its approval letter, which will be crucial for future transactions. Source: [Bloomberg](https://www.bloomberg.com/opinion/articles/2024-09-01/in-india-some-m-a-are-more-equal-than-others)

Amid the ongoing row between a New York-based short seller and the Indian market regulator, a completely different controversy is brewing. It involves the country’s second-most-valuable bank, and its plan to swallow up its securities affiliate.
Some shareholders of ICICI Securities are upset over the terms of the buyout and want to know how SEBI allowed the delisting, waiving its own rules.
A company-law tribunal in Mumbai quashed their challenge and allowed the deal to proceed, but a separate class-action suit is ongoing.
SEBI is also facing criticism for its role in the merger, with allegations of conflict of interest against its chief.
The regulator issued an administrative warning but did not satisfy all parties, leading to a class-action suit by over 100 investors.
The Bombay High Court has directed SEBI to share its approval letter, which will be crucial for future transactions.

Source: Bloomberg