ICICI Bank's Controversial Exemption Sparks Outrage

• Amid the ongoing row between a New York-based short seller and the Indian market regulator, a completely different controversy is brewing. It involves the country’s second-most-valuable bank, and its plan to swallow up its securities affiliate.
• Some shareholders of ICICI Securities are upset over the terms of the buyout and want to know how SEBI allowed the delisting, waiving its own rules.
• A company-law tribunal in Mumbai quashed their challenge and allowed the deal to proceed, but a separate class-action suit is ongoing.
• SEBI is also facing criticism for its role in the merger, with allegations of conflict of interest against its chief.
• The regulator issued an administrative warning but did not satisfy all parties, leading to a class-action suit by over 100 investors.
• The Bombay High Court has directed SEBI to share its approval letter, which will be crucial for future transactions.

Source: Bloomberg