Chanda Kochhar to face ICICI Securities shareholders today at AGM

The resolution comes in the face of the conflict of interest for clearing loans to Videocon group which, in turn, invested in Nupower Renewables, a firm owned by Kochhar's husband

ICICI Securities shareholders will vote on ICICI Bank MD & CEO Chanda Kochhar's candidature as a director at the annual general meeting in Mumbai on Thursday. The resolution comes in the face of the conflict of interest for clearing loans to Videocon group which, in turn, invested in Nupower Renewables, a firm owned by Kochhar’s husband, Deepak Kochhar. The allegations are being investigated by Sebi, the CBI and the I-T department. Here are some proxy firms’ recommendations:

Glass Lewis: Vote: AGAINST

"There are significant legal and regulatory issues involving the company's non-executive chair nominee Chanda Kochhar. We believe shareholders should be concerned about the matters facing Kochhar, which includes her being forced to take a leave of absence from the ICICI Bank board, pending the outcome of the investigation into her conduct. While the issues pertain to the parent company, ICICI Bank, the mere fact that she has been forced to take leave may be representative of serious lapses of governance issues that carry reputational risk issues which may negatively impact the company.

 

WhatsApp leak: Sebi to take action against mkt operators of blue-chip firms

The companies may also face censure action by the market watchdog for alleged lapses

Sebi will soon take action against some market operators and senior staff members of about a dozen listed blue-chip firms for their alleged involvement in leak of price-sensitive information through WhatsApp.

The companies may also face censure action by the market watchdog for alleged lapses in safeguard mechanism to check leak of unpublished price sensitive information (UPSI), including financial results before they were made public for all investors, regulatory sources said.

The regulator is close to completing its probe into the matter, including for suspected unlawful gains through insider trading on the basis of leaked information, and is collating the details it had sought from all concerned companies, the officials said.

Almost all the companies have replied to Sebi's queries in this regard.

According to top officials, the regulator is taking a tough stand on the companies that fail to fix individual responsibility for any leak of price-sensitive information. Besides, the market operators, including staff members of some brokerage firms, are also under the scanner for colluding with the company executives in the case, which came to light late last year.

Among various companies from which Sebi had sought details through its interim orders, HDFC Bank last week disclosed in a regulatory filing that it has submitted the requisite information to the regulator.

Referring to Sebi's February 23 directions, HDFC Bank said, "In this regard, and keeping with its commitment to the highest standards of corporate governance and the integrity of its systems, controls and processes, the Bank has submitted the requisite information and reports to Sebi in compliance with the Sebi directions and within the timelines prescribed therein."

Sebi had asked the bank to conduct internal investigations to identify those guilty of the leak and take steps to check any recurrence, and also provide necessary information to the regulator within three months.

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