MUMBAI - Axis Bank (NS:AXBK) Limited announced on Wednesday that the Securities and Exchange Board of India (SEBI) has issued a Confirmatory Order regarding its subsidiary, Axis Capital (NYSE:AXS) Limited (ACL), modifying the restrictions imposed on the company's merchant banking activities in the debt segment.
The regulatory update follows an earlier SEBI Interim Order dated September 19, 2024, which barred ACL from taking up any new assignments as a merchant banker, arranger, or underwriter for debt securities offerings. This action was taken pending a SEBI inspection of ACL's operations.
Following a personal hearing and subsequent submissions by ACL, SEBI has now passed a Confirmatory Order dated November 26, 2024, which revises the initial debarment. The updated order narrows down the scope of the restriction to only those activities of ACL that are alleged to be in violation, as per the initial Interim Order. The matter remains under adjudication with SEBI.
Axis Bank Limited, through its Company Secretary Sandeep Poddar, has communicated this development for the information and records of concerned parties, including the London Stock Exchange (LON:LSEG) and the Singapore Stock Exchange.
This regulatory development is a significant update for investors and market participants who engage with ACL's services in the debt segment. The modification of the restrictions by SEBI suggests a targeted approach towards the alleged violations, rather than a blanket prohibition on ACL's merchant banking activities in the debt market.
The bank has not disclosed specific details regarding the nature of the alleged violations or the potential impact on ACL's business operations. The ongoing adjudication by SEBI indicates that further details may emerge as the regulatory process continues.
The information is based on a press release statement issued by Axis Bank Limited and has been disseminated for public record.
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