The proposed merger of Bank of Rajasthan (BoR) with ICICI Bank has come under market regulator SEBIs scanner, sources revealed on Tuesday.

Sources say SEBI is investigating trading activity leading up to BoR-ICICI Bank merger.

On May 18, after the market hours, the ICICI Bank had agreed to take over BoR through a share-swap deal which values the troubled BoR at about Rs 3,000 crore. As per the board decision, the transaction would be done by way of offering 25 shares of ICICI for every 118 shares of BoR. However, the proposed merger is being opposed by BoR employees.

Sources say SEBIs investigation arm is looking at possible insider trading and has asked for trading data from Jaipur Stock Exchange. According to sources, SEBI would also get data from surveillance departments of Bombay Stock Exchange and National Stock Exchange regarding the deal.

When contacted, ICICI Bank refused to comment on the development.

ICICI Bank will seek the shareholders approval for the proposed merger of BoR with itself through extra-ordinary general meeting (EGM) on June 21. Post-merger, the total business of ICICI Bank would cross Rs 4 lakh crore and there would be an increment of 25 per cent in branch network.