Quantum Mutual Fund Challenges ICICI Securities Delisting

Quantum Mutual Fund has filed an appeal with the NCLAT challenging the NCLT's decision to approve the delisting of ICICI Securities. The Fund raises concerns over valuation, alleged fraudulent voting, conflict of interest among directors, and violations of delisting norms.

Quantum Mutual Fund has officially appealed to the National Company Law Appellate Tribunal (NCLAT) against a prior decree by the National Company Law Tribunal (NCLT) that sanctioned the delisting of ICICI Securities from stock exchanges.

On August 21, the National Company Law Tribunal green-lit the Scheme of Arrangement for delisting ICICI Securities' shares, rejecting objections raised by minority shareholders Quantum Mutual Fund and Manu Rishi Gupta. The scheme allows ICICI Securities shareholders to receive 67 ICICI Bank shares for every 100 shares held. After delisting, ICICI Securities will become a fully-owned subsidiary of the bank.

Ajit Dayal, founder of Quantum Advisors, criticized the scheme, calling it a breakdown of corporate governance norms. Quantum Mutual Fund had earlier listed concerns over valuation, alleged fraudulent means by ICICI Bank, conflict of interest of independent directors, and violations of delisting norms as grounds for their objection.

(With inputs from agencies.)