ICICI Archives - Maeeshat

In crackdown against Zee, SEBI summons MF CEOs and rating agency chief for quizzing

by admin | May 25, 2021 | Corporate, Corporate Buzz

New Delhi : In what finally appears to be a crackdown against Zee, consequent to the enforcement of securities by two lenders on Friday, Member SEBI Madhabi Puri Buch has finally summoned the four CEOs of Birla MF, ICICI MF, HDFC MF and RELIANCE MF and the CEO of ratings agency Brickworks on Monday to quiz them on the matter.

This looks like a case for punitive action by SEBI.

On January 27, Zee Chairman Subhash Chandra stated that an agreement had been reached with lenders; the next morning his son said 96-97 per cent lenders have approved; the stock rose from Rs 310 to Rs 380; by Friday it became clear that no agreement had been signed; further two lenders enforced securities and sold shares, proving the statements of January 27 and 28 were clearly fraudulent and misleading.

It is a tale of failure across the food chain:

*Stock exchanges: Made no attempt for a full week to verify the truth of publicly announced claims on the alleged settlement with lenders, and/or details in respect of the same

*Rating Agency Brickworks – did not downgrade securities despite fall in security cover; made no attempt to verify the truth of publicly announced claims on the alleged settlement with lenders, and finally, on Friday, still referred only to “reported” settlement, whereas it has powers to have called for all details from the Borrowers

*MFs – did not disclose breach of covenants on borrowings to their investors; attempted to brush breaches under the carpet by discussing private “settlement” without approvals from their Board of Directors/Trustees; did not refute false public claims on settlement by promoters despite knowing full well there was no agreement signed

*SEBI – Did not haul up MFs for attempting to privately discuss/”settle” default situation without informing their investors about the same, and without any formal internal approvals

– did not haul up stock exchanges for week long inaction

– did not haul up rating agency for week long inaction

– has not taken any action against promoters for blatant fraud and misrepresentation

—IANS

ICICI Securities focuses on distribution business to diversify revenue stream

by admin | May 25, 2021 | Banking, Business, Economy, Finance, Investing, Markets, News, SMEs

Kolkata : ICICI Securities, which will open its Rs 4,017 crore of initial public offering (IPO) on Thursday, is focusing on business of distribution of financial products like mutual funds to diversify its revenue mix.

“The company’s brokerage income as a proportion to total revenue has come down to 64 per cent from about 70 per cent in four years back and share of all other income has moved from 29 per cent to 36 per cent,” company’s Executive Director Ajay Saraf said.

According to him, its brokerage income has grown but other incomes grew at a faster rate.

The segments like distribution of financial products and investment banking are the major contributors to its other income, he said.

“We have diversified from brokerage to distribution and investment banking. Of the other income, distribution income constitutes about 24 per cent and investment banking has about 10 per cent share…our focus is on the distribution business and its share in the revenue mix is expected to increase further as it has increased to 24 per cent from 19 per cent,” Saraf said.

For IPO, the price band has been fixed from Rs 519 to Rs 520 per equity share and it proposed offering of over 7.72 crore equity shares of face value of Rs 5 each.

—IANS