ICICI complains to Sebi after lawsuit rumours

Shares of ICICI Bank Ltd, India’s second-biggest bank, dropped around noon on rumours that the bank faced a lawsuit in the US. Shares fell as much as 3.1 per cent around 12:30 pm on talk that a US-based stock broking company had filed a lawsuit against the lender.

The bank, in a statement to the Bombay Stock Exchange at 2:38 pm, said: “There are baseless rumours circulating in the market through SMS and emails about a lawsuit filed against ICICI Bank in the US. The bank categorically denies any such lawsuit.” The bank had complained to the Securities and Exchange Board of India and the Economic Offences Wing (EoW) of the Mumbai Police, a bank spokesperson said.

The EoW detained two city-based brokers. Police officials involved in the probe refused to give details. Sources said the rumour initially appeared on a blog, owned by a Bangalore-based resident, and was sent around by some brokers.

ICICI Bank shares recovered by the close of trading at Rs. 879.95, gaining 1.2 per cent in Mumbai.