The Securities and Exchange Board of India, the capital market regulator, has issued a show cause notice (SCN) to Axis Bank and its subsidiaries in connection with a stake buy in Max Life Insurance.
Axis Bank and its subsidiaries, Axis Securities Limited and Axis Capital Limited, stated they got a SCN via email from the Sebi.
The SCN is being evaluated, and answers will be filed with Sebi, since the transactions were carried out with the necessary regulatory clearances, it stated.
The holding company of Max Life Insurance, Max Financial Services Limited, also said that a few of the company's directors and important managerial staff—in each case, "both past and present"—had received a SCN via email from Sebi.
The Axis Bank board of directors approved the plan to buy Max Life shares earlier this year, raising Axis entities' total ownership of the insurance company from 19.02 percent to 19.99 percent.
The Insurance Regulatory and Development Authority of India (IRDAI) has approved Axis Bank and its two subsidiaries, Axis Capital Ltd and Axis Securities Ltd, to jointly acquire about 20% of Max Life Insurance.Last year, Axis Bank and Max Financial Services renegotiated their agreement so that Axis Bank could use the discounted cash flow method to acquire a 7% stake in Max Life Insurance at fair market value.
The agreement has been updated in response to the IRDAI's October 2022 advice.
Last year, Axis Bank and Max Financial Services renegotiated their agreement so that Axis Bank could use the discounted cash flow method to acquire a 7% stake in Max Life Insurance at fair market value.
The Axis Bank board of directors approved the plan to buy Max Life shares earlier this year, raising Axis entities' total ownership of the insurance company from 19.02 percent to 19.99 percent.
The Insurance Regulatory and Development Authority of India (IRDAI) has approved Axis Bank and its two subsidiaries, Axis Capital Ltd and Axis Securities Ltd, to jointly acquire about 20% of Max Life Insurance.
Axis Bank and Max Financial Services renegotiated their agreement last year so that Axis Bank could use the discounted cash flow approach to purchase a 7% share in Max Life Insurance at fair market value.
The agreement has been revised in accordance with the IRDAI's October 2022 advice.
