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If Found Guilty, SEBI Can Fine ICICI’s Chanda Kochhar Rs 25 Crore, But Can’t Ask Her To Resign
ICICI chief executive Chanda Kochhar at an event in Mumbai. (Abhijit Bhatlekar/Mint via Getty Images)
India's stock market watchdog has the powers to impose a fine up to Rs 25 crore on ICICI Bank chief executive officer Chanda Kochhar if it finds she and the bank did not abide by fair disclosure norms, said a report in Mint.
However, the Securities and Exchange Board of India (SEBI) has no right to demand Kochhar's resignation in its ongoing probe, said sources.
"Only a financial penalty can be levied as under the current notice, there is no provision for asking the CEO to step down," one of the sources told Mint.
The report said that maximum penalty of Rs 25 crore, or three times the ill-gotten gains, can be levied under SEBI rules. It added that the quantum of penalty will be under the discretion of the adjudicating officer.
This comes after SEBI sent a notice to ICICI Bank and Kochhar, regarding disclosure of sensitive information from the bank and the CEO, the report added.
ICICI Bank is considering filing a consent plea with the markets regulator to close the investigation, The Economic Times reported last week.
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