NEW DELHI: Shares of ICICI Securities climbed 5 per cent on Friday after ICICI Bank, which holds 80 per cent stake in ICICI Securities, voted in favour of having Chanda Kochhar on the board of ICICI Securities.Corporate governance observers questioned the move.
Wondering if the decision to send Kochhar on leave was an eye-wash, said Shriram Subramanian of InGovern, a proxy advisory and corporate governance firm.
"ICICI Bank has put itself in a difficult position by proposing Kochhar's name.
As she was sent on leave, how can she attend board meetings" But the market reacted positively to the development, with the stock rising 4.52 per cent to hit a high of Rs 342 on the BSE.Kochhar, the CEO and Managing Director of ICICI Bank, was earlier sent on leave as the lender launched an independent probe into the allegations of conflict of interest in the bank advancing large loans to the Videocon group, which allegedly had some tie-ups with the private lender.