Quantum Mutual Fund has filed an appeal in the National Company Law Appellate Tribunal, Delhi (NCLAT), challenging the delisting of ICICI Securities Ltd.
Dismissing objections raised by minority shareholders, the National Company Law Tribunal (NCLT) Mumbai, on August 21, approved the delisting of ICICI Securities Ltd from the stock markets.
Shareholders of ICICI Securities will get 67 shares of ICICI Bank Ltd for every 100 shares they hold, according to the approved plan.
Justice Virendra Singh G Bisht and technical member Prabhat Kumar dismissed the pleas of Quantum Mutual Fund and investor Manu Rishi Guptha, who opposed the proposed delisting of ICICI Securities.
ICICI Securities told the tribunal that those opposing the delisting have no standing, as the provision of Section 230(4) of the Companies Act states that any objection to the arrangement under Section 230 shall be made only by at least 10 persons. percent of dividends or 5 percent of total outstanding debt as per the latest audited financial statement.
Quantum Mutual Fund and Guptha hold 0.08 per cent and 0.002 per cent of ICICI Securities’ paid shares, respectively.
ICICI Securities, a subsidiary of ICICI Bank, argued that the two applications should be dismissed because they are against the principle of shareholder democracy. It said the delisting proposal was approved by 93.82 percent of the total shareholders of ICICI Securities.
Minority shareholders told a Delhi court that ICICI Securities violated shareholder privacy and governance rules by sharing shareholder details with ICICI Bank. They alleged that ICICI Bank employees called and misled shareholders to vote in a certain way in the name of “spreading awareness.”
Manu Rishi Guptha had said earlier Business Standard“We will complain and we will not allow the injustice to spread.”
First published: Sep 18 2024 | 7:23 PM IST