SEBI issues warning to ICICI Securities for merchant banking activities

29 Feb 2024 , 12:18 PM

Brokerage house ICICI Securities Ltd said on Wednesday, February 28, that the Securities and Exchange Board of India (SEBI), the country’s market regulator, has sent the business an administrative warning over its merchant banking operations.

‘This is to inform you that the Securities and Exchange Board of India (‘SEBI’) has issued an administrative warning to ICICI Securities Limited (‘the Company’) vide their letter dated February 28, 2024, which was received on the same day at 12:16 p.m. through e-mail,’ according to a filing with the stock exchange.

ICICI Securities’ operations and finances are unaffected in the near term by this administrative warning. According to the company’s statement, it will carry on conducting business in compliance with all relevant laws and rules.

‘The warning has been given in relation to the examination of the company’s books and records pertaining to its merchant banking operations. The aforementioned administrative warning letter has no bearing on the company’s finances, operations, or other business endeavours,’ the statement continued.

For the three months ending December 2023, ICICI Securities reported a 66% year-over-year increase in profit after tax (PAT) to ₹465.7 Crore. As an illustration, during the October through December quarter of the previous fiscal year (FY23), the company reported a PAT of ₹280.9 Crore.

The company’s revenue for the reviewed quarter was ₹1,323.3 Crore, which represents a 50% YoY increase from the ₹879.9 Crore in the three months that ended on December 31, 2022. The total assets of the client as of the three months ending December 31, 2023, were ₹6.9 Lakh Crore, indicating an annual rise of 16%.

ICICI Securities Ltd.’s shares closed at ₹817.50 on the BSE, down ₹4.75, or 0.58%.

For feedback and suggestions, write to us at [e-mail]