SEBI had last month served a notice to ICICI Bank CEO and MD Chanda Kochhar in relation to the bank’s dealings with Videocon Group.
The Securities and Exchange Board of India (SEBI) has the authority to place a penalty but cannot demand the resignation of ICICI Bank CEO Chanda Kochhar if it is found that she and the bank violated fair disclosure norms, Mint reports.
A maximum penalty of Rs 25 crore could be levied under SEBI norms, the report said.
The quantum of a financial penalty will be decided by SEBI’s adjudicating officer, sources told the paper. “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.
Moneycontrol could not independently verify the news.
SEBI had on May 24 issued a notice to Chanda Kochhar for non-disclosure of information regarding dealings with Videocon Group.
The ICICI Bank CEO could also ask for a settlement and pay a fine without admitting any wrongdoing, a second source told the paper.
ICICI Bank is considering filing a consent plea with the markets regulator to close the investigation, The Economic Times reported last week.