SEBI probes whistleblower allegations of misconduct by ICICI Securities in its fairness opinion on a money market entity.

The Securities and Exchange Board of India (SEBI) has initiated an investigation into allegations of misconduct in the fairness opinion provided by ICICI Securities for ICICI Bank’s QIP (Qualified Institutional Placement) in 2019. The allegations were made by a whistleblower, who claimed that the fairness opinion was tainted by conflicts of interest and that the bank’s senior officials had manipulated the process. The whistleblower alleged that the valuation of the bank’s shares by a third-party firm, which was hired to provide a fairness opinion, was compromised by ICICI Bank’s senior officials. SEBI has asked ICICI Securities to provide all relevant documents and information related to the fairness opinion. The agency is also investigating whether the bank’s independent directors were aware of any potential conflicts of interest and failed to exercise their due diligence. The investigation is ongoing, and SEBI has also sought information from other parties, including the third-party firm that provided the fairness opinion. The outcome of the investigation is yet to be known.

Source: https://www.moneylife.in/article/sebi-investigating-whistleblower-allegation-of-misconduct-in-icici-securities-fairness-opinion/75762.html