Sebi drops Rs 3,912 crore probe against Max Financial, Axis Bank over disclosure lapses
The case stems from Sebi’s probe into a series of transactions between Max Financial, Max Life, and Axis entities between FY10 and FY22. The regulator had examined three sets of arrangements-in 2010, 2015 and 2020-relating to the issue, sale and subsequent acquisition of shares in Max Life.
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Following the investigation, Sebi issued a show cause notice on October 24, 2024 alleging that the transactions were structured to provide Axis Bank benefits beyond permissible commission limits for its role as a corporate agent. It had also alleged that Max Financial made inadequate and delayed disclosures and that the arrangements formed part of a fraudulent scheme that benefited Axis entities at the expense of Max Financial and its shareholders.
“… the disclosures made by MFSL (Max Financial Services) could undoubtedly have been more comprehensive and, in certain instances, a more cautious and consistent approach to disclosure may have been desirable,” said Sebi whole time member Amarjeet Singh.
