The Securities and Exchange Board of India (Sebi) has shot down ICICI Bank’s plea to reserve 10 per cent of the bank’s forthcoming Rs 3,500-crore public issue for its existing small shareholders.The bank identified shareholders who hold less than 1,000 shares of the bank as small shareholders. The bank, which filed a draft prospectus for the issue with Sebi on March 12, had suggested reservation of 10 per cent of the total maximum 115 million shares.However, Sebi has now shot down the bank’s plea, saying that existing Sebi guidelines have no such provisions for reservations in a public issue. ‘‘The best way to offer something to existing shareholders is through a rights issue,’’ said a Sebi source. Since Sebi cannot consider a special reservation, it also cannot accept a plea for differential pricing, the source added.The bank decided against a rights issue for now, as the American Depositary Receipt holders of the bank need to avail of the same and the RBI regulations prohibit simultaneous issue of shares to domestic and ADR holders.However, the bank, which is getting ready to launch roadshows for the Rs 3,500 crore issue, is yet to receive any official communication from Sebi.Sources said that Sebi had allowed special reservation and differential pricing in some of the recent issues from the government, where it offloaded its stake through offers for sale.
