Axis Capital to explore legal recourse against Sebi ban on debt segment

Capital of the Axis On Friday he said he is exploring legal resources against the order of markets regulator Sebi that prevents the company from accepting new allotments as merchant banker for the debt segment. In a statement, the company clarified that Sebi has not imposed any other restrictions on Axis Capital and it will continue to conduct all other business activities in the normal course in the equity capital markets, infrastructure investment trusts (InvITs), real estate investment trusts (REITs), mergers and acquisitions, private equity and institutional equity.

On Thursday, the Securities and Exchange Board of India Sebi, in an interim order, has restrained Axis Capital from accepting fresh allotments as merchant banker, arranger or underwriter for any issue or offer for sale of securities in the debt segment. This restriction will remain in force till further orders.

“ACL (Axis Capital Ltd) provided guarantee/indemnity for the repayment of ENT (non-convertible bonds) under the guise of subscription, which was not permitted under current legislation. regulatory frameworkSuch activity poses a risk to the financial system “as it may potentially disrupt the orderly functioning of the market,” Sebi said.

Axis Capital, a subsidiary of Axis BankHe clarified that he has not made any new allocations in the debt segment for over a year.

Moreover, the revenue generated from its debt business in fiscal year 2023-24 accounted for only 5 per cent of the company’s total revenue.

“Based on the merits of the case and applicable laws, Axis Capital is currently evaluating all available legal remedies in connection with Sebi’s interim order,” the company said in a statement. The firm further emphasised its commitment to compliance, risk management and client interests.

“ACL believes in ensuring the highest level of compliance with applicable regulations and is committed to meeting all legal and regulatory requirements at all times. ACL has a strong portfolio of business and will continue to deliver first-class execution for our clients,” he added.

Source link

Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.

Leave a Comment