NCLT Clears ICICI Securities Delisting Despite Objections – Here’s What You Need to Know

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has approved ICICI Bank’s application to delist its brokerage arm, ICICI Securities, from the stock exchanges. The tribunal, led by Justice Shammi Khan, also dismissed two petitions that opposed the delisting plan. A detailed order is still awaited.

This follows a similar decision made by the Mumbai bench of NCLT in August, which also approved the delisting.

ADVERTISEMENT

Be part of our community by downloading and registering on the Angel One app. Your support helps us keep delivering quality content.

ICICI Securities announced its delisting and merger with ICICI Bank in June 2023, a move that shareholders approved in March 2024, with 72% of minority shareholders voting in favor. The plan allows ICICI Securities to become a fully-owned subsidiary of ICICI Bank, with shareholders receiving 67 ICICI Bank shares for every 100 ICICI Securities shares they hold.

Two investors, Manu Rishi Gupta and Quantum Mutual Fund, filed objections against the delisting, claiming it would harm minority shareholders due to the share-swap ratio. However, ICICI Securities argued that the objections lacked legal standing, as the petitioners did not meet the minimum ownership threshold required to file such complaints.

In November, the Reserve Bank of India and stock exchanges gave their approval for the delisting, subject to conditions. Despite the opposition, the NCLT’s ruling allows ICICI Bank to proceed with its plan to fully integrate ICICI Securities.