ICICI Bank gets RBI's nod to make ICICI Securities wholly-owned subsidiary
Mumbai: ICICI Bank Thursday said it has received approval from the Reserve Bank of India to make ICICI Securities its wholly-owned subsidiary.
On June 26, ICICi Bank said it was considering the subsidiary's delisting from the stock exchange.
ICICI Bank stated that ICICI Securities is a low capital-intensive business, and internal funds are sufficient for its growth without requiring additional capital infusion.
Consequently, on June 29, ICICI Securities announced its intention to delist and become a wholly-owned subsidiary of ICICI Bank, pending approvals from various regulatory authorities.
The move to delist comes after five years of being listed on the stock exchange, with its IPO in April 2018 receiving a lukewarm response due to low subscription rates.
Further, the decision is motivated by the cyclical nature of the securities broking business, which is heavily influenced by macro-economic conditions and market trends.
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