SEBI imposes monetary penalty on Axis Bank for violating regulations

Market regulator Securities and Exchange Board of India (SEBI) announced on Thursday that it had imposed a Rs 5 lakh penalty on private lender Axis Bank for "violating regulations."

SEBI said that it has fined Axis Bank under the provisions of section 15A(a) of the SEBI Act for its violation of provisions of regulation 27 of the Merchant Bankers (MB) Regulations.

"... I, in 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 Noticee 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 added that he was of the view that the said penalty is commensurate with the default committed by Axis Bank.

Axis Bank has 45 days to pay the amount to SEBI.

The market regulator explained that it had conducted an examination into the Debt Capital Market operations of Axis Bank during the period August 2016 to August 2019. During the course of examination, it was observed that bank had failed to submit the details /information of the transactions relating to its acquisition of the securities to SEBI in respect to 9 public issuances of debt. It was alleged that Axis Bank had violated the provisions of Regulation 27 of the MB Regulations and thus adjudication proceedings were initiated against the lender by SEBI.

Shares of Axis Bank on Thursday closed 0.61 per cent lower at Rs 722.20 apiece on BSE.

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