The Securities and Exchange Board of India (SEBI) has fined private lender Axis Bank Rs 5 lakh for “violating regulations.” SEBI announced that it has fined Axis Bank under Section 15A(a) of the SEBI Act for violating Regulation 27 of the Merchant Bankers (MB) Regulations.
“In the exercise of the powers conferred upon me under Section 15-I of the SEBI Act read with rule 5 of the Adjudication Rules, hereby impose a penalty of Rs. 5,00,000/–(Rupees Five Lakh only) on the Notice viz. Axis Bank Limited – Merchant Banker, under the provisions of section 15A(a) of the SEBI Act for its violation of provisions of regulation 27 of the MB Regulations,” wrote Adjudicating Officer Suresh B Menon.
Menon went on to say that he believes the penalty is proportionate to the default made by Axis Bank. The sum must be paid to SEBI within 45 days by Axis Bank.
The market regulator revealed that it has initiated an investigation into Axis Bank’s Debt Capital Market operations from August 2016 to August 2019. During the assessment, it was discovered that the bank had failed to provide to SEBI the details/information of the transactions pertaining to the acquisition of securities in respect of 9 public debt issuances. Axis Bank was accused of violating the terms of Regulation 27 of the MB Regulations, and SEBI launched adjudication procedures against the firm.
On the BSE, Axis Bank shares closed 0.61 percent down at Rs 722.20 each on Thursday.