SEBI asks Chanda Kochhar to reply to show cause notice by July 10

The Security and Exchange Board of India (SEBI) has asked ICICI Bank Chief Executive Officer (CEO) Chanda Kochhar to reply to a show cause notice over alleged violation 0f listing disclosure norms by July 10, Business Standard reported.

Kochhar and the bank had missed the June 7 deadline and sought more time to respond to the notice due to lack of documentary proof that support the allegations.

“The notice, however, did not have adequate documents to support the allegations. Before filing an appropriate reply, evidence of alleged contravention of securities laws need to be examined by the recipients,” the report quoted a source as saying.

Moneycontrol couldn't independently verify the report.

Meanwhile, the bank has written to the regulator, requesting it to share documents on the basis of which the notice was served.

The regulator in its notice had alleged violations of code of conduct because Kochhar reportedly had not disclosed conflict of interest arising out of alleged business deals between ICICI Bank, Videocon and NuPower Renewables, the latter of which was led by her husband Deepak.

According to the report, SEBI mentioned in the 12-page notice that Kochhar admitted her husband had many dealings with Videocon Group over the years.

All listed companies and their key managerial staff are required to follow a code of conduct and should comply with all security norms.

On April 17, the regulator had initiated a preliminary inquiry into whether the bank’s board was aware of the conflict of interest and also the stance of the independent directors when the board had approved the loan. Besides, the regulator sought an explanation on lapses in disclosures of business dealings involving Deepak Kochhar.