Axis Capital is looking into legal opportunities after Sebi’s recent order prevented them from taking on new projects as a merchant banker for the debt segment.
The company explained that this rule does not impact their other business moves, like equity capital markets, infrastructure investment trusts (InvITs), mergers and acquisitions (M&A), real estate investment trusts (REITs), private equity, and institutional equities.
On Thursday, Sebi issued a temporary order that stops Axis Capital from acting as a merchant banker, arranger, or underwriter for any debt securities until the next notice.
Sebi said that Axis Capital had provided guarantees for the redemption of non-convertible debentures (NCDs) under the cover of underwriting, which is not allowed under current regulations. According to Sebi, this action risked the financial system by disrupting market order.
Axis Capital, a subsidiary of Axis Bank, stated that it has not taken on any new debt segment assignments for more than a year. The revenue from its debt business in FY 2023-24 accounted for only 5% of the company’s total income.
The firm underlined its dedication to observation, risk management, and client interests, saying that it has all available legal remedies against Sebi’s temporary order.
The company repeated its commitment to maintaining high regulatory submission standards and confirmed that it would continue to provide the best services to its clients across its different business segments.
Disclaimer
The information provided is based on current public reports and does not constitute financial or legal advice. Please consult with a qualified professional for specific guidance regarding SEBI’s rulings and financial regulations.
