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Proxy firms differ on Kochhar's re-appointment at ICICI Securities

Kochhar, MD & CEO of ICICI Bank, is currently under scrutiny for her role in extending loans to the Videocon group, a conflicted party

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India’s leading proxy firms have opposing views on the possible re-appointment of as the director on the board of ICICI Securities, the broking arm of

In a notice for its (AGM) on August 30, ICICI Securities, which listed this fiscal, has proposed a resolution to reappoint Kochhar as a director on its board.

(IiAS) had recommended investors to vote ‘against’ the proposal even as (SES) asked investors to vote ‘for’ it.

“Kochhar’s presence on the board of ICICI Securities, while legally compliant, exposes the company to the same risks and the possibility of legal and regulatory sanctions. We believe she should be reappointed on the board only after all the charges against her have been cleared,” said IiAS in a note.

ALSO READ: Srikrishna panel report on Chanda Kochhar likely in 2 mths: ICICI Chairman

Kochhar, MD & CEO of ICICI Bank, is currently under scrutiny for her role in extending loans to the Videocon group, a conflicted party. has initiated an independent enquiry into various claims made by a whistleblower.

Kochhar is currently on a leave of absence pending the outcome of the inquiry. Market regulator Securities and Exchange Board of India (Sebi) too has issued a showcause notice to Kochhar and over alleged violation of disclosure norms.

Also, in a recent filing with US market regulator SEC, ICICI Bank highlighted the possibility of increased regulatory scrutiny and reputational risks from these developments impacting its operations and financial performance.

SES has said Kochhar’s “appointment is compliant with law and no concern has been identified in the profile, attendance performance and time commitment of Kochhar.”


ALSO READ: Allegations against CEO Chanda Kochhar can affect business: ICICI Bank

An official at SES said so far there have only been allegations against Kochhar and no regulatory action have been taken.

SES, however, has recommended voting ‘against’ some other resolutions floated by pertaining to employee stock option plans (ESOP), citing non-disclosure of exercise price.

 

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First Published: Fri, August 24 2018. 17:41 IST
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