ICICI Independent Director Fined for Insider Trading Post Resignation, SEBI Probes

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ICICI Independent Director Fined for Insider Trading Post Resignation, SEBI Probes
Credit: © Reuters.

By Malvika Gurung

Investing.com -- In a regulatory filing on Friday, private lender ICICI Bank (NS: ICBK ) informed the exchanges that one of its independent directors Rama Bijapurkar submitted her resignation from the bank’s Board of Directors, starting January 23, 2022. 

While Bijapurkar cited the reason for her resignation as a potential conflict of interest due to her engagement with other financial institutions, in line with her teaching and research activities at an educational institution, the bank on Jan 22 disclosed a different development after her resignation.

As per ICICI Bank’s disclosure to the stock exchanges, the independent director picked 4,900 equity shares of the bank on January 5, after the trading window closed for insiders, ahead of the Q3 earnings.

The markets regulator SEBI is looking into Bijapurkar’s trades history to find if she violated the insider trading rules. 

The regulator found out that the independent director had purchased 4,900 shares of ICICI Bank for Rs 38.6 lakh after the trading window for insiders closed on Jan 5, while she was still an independent director on the bank’s board.

However, as per a TOI report, the bank clarified that Bijapurkar informed the management of the development as soon as she found out that her independent financial adviser purchased the shares in her account, without prior intimation. 

The bank’s audit committee has penalized Bijapurkar with Rs 2 lakh for the violation of its code and SEBI’s insider trading rules.

Bijapurkar serves as an independent director on the boards of six other companies including M&M (NS: MAHM ) Financial Services, Nestle (NS: NEST ) India, and Sun Pharmaceuticals, among others.

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