ICICI Securities has agreed to pay ₹69.8 lakh to settle allegations of violating Public Issue Regulations and Merchant Banker Regulations. The settlement comes after the Securities and Exchange Board of India (SEBI) issued a showcause notice to the merchant banker, citing various lapses, including inadequate due diligence and contradictory statements in a Draft Red Herring Prospectus (DRHP) and related news articles.
The violations pertained to questionable site visit reports and insufficient documentation to support the object of the public issue. After receiving the notice on October 31, 2023, ICICI Securities applied for a settlement in November 2023 and subsequently paid the settlement amount as recommended by SEBI’s High-powered Advisory Committee (HPAC) and approved by its panel of whole-time members.
The settlement was finalized on August 20, 2024, and ICICI Securities has also issued caution letters to the officers involved in the violation. The regulatory action highlights SEBI’s strict oversight of merchant banking activities to ensure compliance with regulations and safeguard investor interests.
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