Money & Banking

RBI rejects ICICI Bank’s proposal to appoint Sandeep Batra as ED

Our Bureau Mumbai | Updated on November 02, 2019 Published on November 02, 2019

ICICI Bank Ltd.   -  Bloomberg

The Reserve Bank of India (RBI) has rejected a proposal by ICICI Bank for appointment of Sandeep Batra as an executive director (ED) after SEBI penalised him in a case related to merger of Bank of Rajasthan.

It has said the proposal can be submitted one year after the settlement proceedings with SEBI is concluded. “The Bank has received a communication from RBI not acceding to the request for appointment of Batra at present and to resubmit the proposal for approval after one year from the conclusion of settlement proceedings,” ICICI Bank said in a regulatory filing late on Friday night.

The board of directors of ICICI Bank had proposed the appointment of Batra as an ED for a five year period on May 6, 2019 subject to RBI approval. However, market regulator SEBI in an order on September 12 had levied a penalty of ₹2 lakh on Batra in his capacity as the Compliance Officer of the Bank in 2010.

“The order was in respect of a matter wherein ICICI Bank had made a disclosure after its Board meeting held on May 18, 2010 providing an in-principle approval for the amalgamation of The Bank of Rajasthan (eBoR) with the Bank,” ICICI Bank said, adding it had entered into an agreement earlier on the same day with certain shareholders of eBoR. “The disclosure made by the Bank after the Board meeting was construed as delayed disclosure by SEBI while issuing the order,” ICICI Bank further said.

Settlement proceedings under SEBI (Settlement Proceedings) Regulations, 2018 have been initiated in this regard by Batra.

Published on November 02, 2019
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