‘Manipulation not evident in ICICI Bank share trading’
The Securities and Exchange Board of India (SEBI) said its investigations did not find any evidence of manipulative trading in ICICI Bank shares.india Updated: Nov 20, 2008 23:21 IST
The Securities and Exchange Board of India (SEBI) on Thursday said its investigations did not find any evidence of manipulative trading in ICICI Bank shares. SEBI had conducted the probe on the basis of a complaint by the ICICI Bank on September 17. ICICI Bank MD and CEO KV Kamath had demanded a probe by SEBI, alleging conspiracy by market manipulators to destbilise the bank's shares through rumours.
SEBI said none of the major sellers were observed to be placing orders successively at lower price and there was no pattern observed regarding placement of successive orders at lower price by sellers to hammer down the price. Also, there was no pattern observed of booking intra-day profits by major clients or brokers during this period.
ICICI Bank had on September 16, disclosed that ICICI Bank UK had an exposure of euro 57 million ($80 million) to the failed Lehman Brothers and that the UK subsidiary already held a provision of about $12 million against investment in these bonds. Considering a 50 per cent recovery estimate, the additional provision required would be about $28 million.
SEBI analysed the trading pattern of shares of ICICI Bank for the period September 8, 2008 to October 10, 2008. The client category-wise breakup of turnover in the shares of ICICI Bank in the cash market shows that FIIs accounted for 23.57 per cent and 18.61 per cent of the value of shares sold and bought, respectively, whereas rest of the investors accounted for 76.5 per cent and 81.4 per cent of the value of shares sold and bought, respectively.