Sebi imposes Rs 5 lakh fine on Axis Bank

The showcause notice issued to Axis Bank on March 2, 2021, alleged that bank had acted as a lead manager in 22 public issuances of debt between the period from August 2016 to August 2019, and the Noticee had acquired the securities in 9 of these public issues.

The Securities and Exchange Board of India (Sebi) has imposed a penalty of 5 lakh on Axis Bank for violating merchant banking regulations. The market regulator examined the Debt Capital Market operations of the bank between August 2016 and August 2019. The bank has been asked to pay the penalty in 45 days of the receipt of the order. The showcause notice issued to Axis Bank on March 2, 2021, alleged that bank had acted as a lead manager in 22 public issuances of debt between the period from August 2016 to August 2019, and the Noticee had acquired the securities in 9 of these public issues.

However, the notice said that the Axis failed to report the transactions to Sebi in respect of the aforesaid 9 public issues of debt, where it had acquired securities, as obligated under the provisions of Regulation 27 of Merchant Bankers Regulations. According to Sebi, the bank had invested in issuances by Dewan Housing Finance, Indiabulls Housing Finance, Reliance Home Finance, Shriram Transport Finance, ECL Finance, L&T Finance and Tata Capital Finance.

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