Securities and Exchange Board of India (Sebi) has the powers to impose a penalty up to Rs 25 crore on ICICI Bank CEO Chanda Kochhar if the market regulator finds she and the bank did not abide by fair disclosure norms in its ongoing probe, reported Mint.

Sebi has no right to demand Kochhar's resignation, the report said.

Maximum penalty of Rs 25 crore, or three times the ill-gotten gains, can be levied under Sebi rules, the daily said quoting sources adding that the quantum of penalty will be under the discretion of the adjudicating officer.

The development comes after Sebi sent a notice to ICICI Bank and Kochhar, regarding disclosure of sensitive information from the bank and the CEO, the report said.

“The show cause to Chanda Kochhar alleges that she did not adhere to the bank’s code of conduct as far as making disclosures... Considering that the CEO’s husband (Deepak Kochhar) had a partnership with a firm owned by the promoter (Venugopal Dhoot) of Videocon group, and some of the group’s companies in turn secured loans from the bank, these disclosures should have been made as part of Sebi’s rules on LODR (Listing Obligations and Disclosure Requirements),” an executive was quoted as saying in the report.

However, the other official added that the bank and CEO can go for a settlement by paying a fine and without admitting to any wrongdoing, said the report.

First Published:Jun 11, 2018 11:10 AM IST