Sebi levies Rs 5 lakh penalty on Axis Bank

During this period, Axis Bank acted as a merchant bank for 22 debt issues launched by various companies.

The Securities and Exchange Board of India (Sebi), on Thursday, levied a penalty of Rs 5 lakh on Axis Bank for flouting merchant banking (MB) regulations. The matter dates back to a period between August 2016 and August 2019.

At that time, 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.

Rule 27 of the MB Regulations says that a merchant banker must submit to Sebi, complete particulars of the transaction with respect to the acquisition of the securities