Is Chanda Kochhar, CEO of one of the biggest private sector banks of India ICICI, going to court disgrace?
Four days after market regulator SEBI’s letter to bank, a green signal has been given for an independent probe into allegations of violation of code of conduct against Mrs. Kochhar. The bank in its filings has informed stock markets of its decision.
Board of Directors of the bank decided to hold a probe into the claims made against Mrs. Kochhar. Now, its audit committee will appoint the head of enquiry, determine the terms of reference and the period covered. It will also help in the investigation into this matter.
This development took place after Sebi issued a show-cause notice to the bank and its CEO for alleged violation of disclosure requirements under securities law in the case involving Videocon Group and NuPower Renewables, a firm run by her husband Deepak Kochhar
The big bank assured in a stock market filing, “The scope of enquiry would be comprehensive and include all relevant matters arising out of and in the course of examination of the facts and wherever warranted, use of forensics/e-mail reviews and recordal of statements of relevant personnel etc.”
It may be noted here that Sebi had issued a show-cause notice to the bank and its CEO for alleged violation of disclosure requirements under securities law in the case involving Videocon Group and NuPower Renewables, a firm run by her husband Dipak Kochhar.
The capital markets regulator has observed in the notice that allegations against the bank’s CEO, which are considered major developments, were not disclosed to stock exchanges.