Allegations of breaching shareholder privacy and manipulating votes have been raised against ICICI Securities by minority shareholders during proceedings at the National Company Law Tribunal (NCLT). Led by Manu Rishi Guptha, an investment manager from Bengaluru, these shareholders have brought forward serious concerns regarding the practices of the company, particularly its relationship with its parent entity, ICICI Bank.

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According to the lawsuit filed by Guptha and his fellow minority shareholders, ICICI Securities allegedly disclosed confidential shareholder information to ICICI Bank, thereby compromising the privacy and independence of investors. Moreover, they contend that ICICI Bank employees, instead of those from ICICI Securities, directly engaged with shareholders, purportedly misleading them under the guise of "awareness campaigns".

At the heart of the shareholders' grievances lies the accusation that ICICI Bank exerted undue influence to secure support for its proposal to delist ICICI Securities' broking subsidiary from Indian stock exchanges, according to Advocate Kausik Chhatterjee, the representative from the shareholders' side. They argue that ICICI Bank employees employed persuasive tactics, including the creation of a detailed PowerPoint presentation, to sway shareholders' votes, taking advantage of what they perceive as a lack of technological proficiency among investors.

Furthermore, the petitioners allege that ICICI Prudential Mutual Fund, a subsidiary of ICICI's parent company, engaged in questionable practices by acquiring a significant number of shares shortly before the vote and subsequently voting under the guise of public shareholding. They argue that this contravenes regulatory norms, given ICICI Prudential Mutual Fund's classification within the promoter group, rather than among public shareholders.

However, the tribunal challenged the notion of shareholder coercion, suggesting that shareholders should possess the requisite knowledge to discern and resist such tactics. "Shareholders are expected to be well-informed about their investment decisions," remarked the bench, implying a degree of responsibility on the part of investors.

Despite ICICI Securities' assertion of the suit's lack of merit and jurisdictional concerns, the petitioners remain steadfast in their allegations of compromised voting processes. Senior counsel Arun Kathpalia, representing ICICI Securities, questioned the motives of the plaintiffs, insinuating that they were speculative investors with vested interests.

Nevertheless, the petitioners stand firm in their assertions of interference from ICICI Bank employees and irregularities in shareholding classifications. With the NCLT deferring the case to July for further deliberation, the matter remains poised for intense scrutiny and debate.