INSUBCONTINENT EXCLUSIVE:
of conduct, which required the disclosure of any conflict of interest in the case involving Videocon Group and NuPower Renewables, a firm
owned by her husband Deepak Kochhar.
The show cause notice also said that the bank indirectly violated the disclosure norms of the
Securities and Exchange Board of India (Sebi) by not divulging this information, according to people with knowledge of the matter.
Sebi
rules mandate all listed companies should have a code of conduct that have to be followed by directors and key managerial personnel
These cover conflicts of interest, besides compliance with laws and regulations and ethical issues.
The code of conduct violation is the
main allegation against Chanda Kochhar in the show cause notice that was sent late last week while that against ICICI pertains to the latter
Dhoot subsequently sold his stake but firms controlled by him or associates maintained a relationship with NuPower till early 2013 when
control was finally transferred to a trust controlled by Deepak Kochhar for a small sum.
The lender and Chanda Kochhar have denied any
material transaction or relationship that reasonably could be expected to give rise to such a conflict, and the group compliance officer
provided by the bank has satisfied any of the stakeholders including the regulators
The board met on May 25, a day after the show cause notice was issued to Kochhar, to discuss the matter.
Lawyers said the question is
difficult for the Sebi proceedings to be settled, but if the issue was merely of nondisclosure of probable conflict in an otherwise valid
