Market regulator SEBI has sent a notice to ICICI Bank relating to alleged delayed disclosure on May 18, 2010, of an agreement entered into by the bank on the same day subject to the approval of its board relating to the erstwhile Bank of Rajasthan (eBoR).
The notice is under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995, and Rule 4 of the Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005, ICICI Bank said in a regulatory filing on Wednesday.
“Over eight years ago, the bank had made the requisite disclosure relating to eBoR upon approval by its board of directors and upon conclusion of its board meeting which commenced at 18:00 hours on May 18, 2010, culminating in making disclosures to NSE at 2010 hours and BSE at 20:18 hours,” it said.
In 2017, SEBI had barred seven entities, including former promoters of eBoR from trading in the securities market for a period of five years and directed them to give back illegal gains worth over ₹95 lakh.
SEBI had probed possible insider trading in the shares of Bank of Rajasthan before the announcement of the merger with ICICI Bank on May 18, 2010.