Market regulator Sebi on Thursday levied a penalty of Rs 5 lakh on Axis Bank for flouting merchant banking regulations. Securities and Exchange Board of India is the regulatory body for the securities and commodity market in India. During this period, Axis Bank acted as a merchant bank for 22 debt issues launched by various companies. It had subscribed to securities in nine such issuances but failed to make requisite disclosure. Axis Bank has 45 days to pay the amount to SEBI.
The market regulator explained that it had conducted an examination into the Debt Capital Market operations of Axis Bank during the period August 2016 to August 2019. During the course of examination, it was observed that the bank had failed to submit the details of the transactions relating to its acquisition of the securities to SEBI in respect to 9 public issuances of debt. It was alleged that Axis Bank had violated the provisions of Regulation 27 of the MB Regulations and thus adjudication proceedings were initiated against the lender by SEBI.
Axis Bank also tried to settle the matter under the consent mechanism but it was not accepted by Sebi.
