You are here: Home » Finance » News » Banks
Business Standard

Sebi settles Axis Bank-United India Insurance case

The matter pertained to alleged lapses in disclosures with respect to change in promoter United India Insurance's shareholding in the private lender.

Topics
Axis Bank

Press Trust of India  |  New Delhi 

Axis Bank
Axis Bank

and its promoter United India Insurance Company have settled with regulator Sebi cases of alleged disclosure lapses and have paid more than Rs 51.5 lakh as total settlement amount.

The matter pertained to alleged lapses in disclosures with respect to change in promoter's shareholding in the private lender. The entities were alleged to have violated Prohibition of Insider Trading (PIT) norms, as per two separate settlement orders passed on Monday.

An investigation by Sebi found that during October 1, 2017 to September 30, 2018 period, the value of trades by United India Insurance Company in the securities of on each trading day was more than Rs 10 lakh.

The promoter was required to make disclosures about such transactions to the private lender within two working days as required under PIT norms.
 

However, in five instances, the said disclosures were made by United India Insurance Company to the lender with a delay of 10-17 days, Sebi noted.

Besides, was required to disclose the same to the stock exchanges within two trading days of the receipt of the disclosure from the promoter.

"However, the same was disclosed by the applicant to the stock exchange only on October 16, 2020, only with a delay of 1,072 -1,080 days," Sebi said.

In December 2020, the regulator had issued notices of summary settlement to the entities, intimating that the proceedings may be settled on filing of settlement applications and remittance of settlement amounts of Rs 41,43,750 by Axis Bank and Rs 10,13,906 by United India Insurance Company.

Accordingly, the entities filed settlement applications with the regulator proposing "to settle without admitting or denying the findings of fact and conclusions of law."

The entities remitted their respective settlement charges on January 27, 2021.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 16 2021. 17:12 IST
RECOMMENDED FOR YOU
.