(M.C)
The Securities and Exchange Board of India (SEBI) on March 24 imposed a Rs 5-lakh fine on Axis Bank for violating merchant banking norms, the markets regulator said in an order. SEBI said it conducted an examination of debt market operations of Axis Bank between August 2016 to August 2019 and found the bank to be in violation of provisions of Regulation 27 of SEBI (Merchant Bankers) Regulations, 1992. The market regulator said Axis Bank during the course of a three-year period, while acting as a merchant banker for 22 entities, subscribed to debt papers of nine companies without informing SEBI about the same 15 days from date of investment, as is the norm.
When asked by SEBI as to why the lender must not be penalised for violating norms, Axis Bank acknowledged that it had failed to comply with reporting norms. However, the bank pleaded that this was an inadvertent violation which it proactively reported to SEBI and said it was taking prompt measures to prevent such violations. “We request forbearance in the matter and request for personal hearing to explain the above in detail,” the lender’s response to SEBI read.
