Market regulator Securities and Exchange Board of India (SEBI) has barred Axis Capital Limited (ACL) from carrying out debt merchant banking activities.
The ban comes as an interim measure after the regulator found that Axis Capital had provided guarantee/indemnity for redemption of NCDs in the guise of underwriting, which it is not permitted to do under the existing regulatory framework.
According to the SEBI mandate, this activity poses a risk to the financial system as it can potentially disrupt the orderly functioning of the market.
More to come…
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