SEBI Restricts ACL from New Assignments in Debt Segment

20 Sep 2024 , 11:06 AM

The Securities and Exchange Board of India (SEBI) has imposed restrictions on Axis Capital Limited (ACL) from taking up new assignments in the debt segment. The move has come after response to concerns raised by SEBI regarding ACL’s operations.

According to a statement released by SEBI, Whole Time Member, Ashwani Bhatia has announced that ACL is prohibited from acting as a merchant banker, arranger, or underwriter for any debt securities issue or offer for sale until further notice. As per the statement, this restriction is implemented as an interim measure while SEBI conducts a thorough inspection of ACL’s operations.

“The role played by ACL (Axis Capital Ltd) in the transaction went beyond the permissible activities as a merchant banker. There is a potential risk of ACL continuing to undertake activities as a registered merchant banker beyond the realm of permitted activities,” SEBI said.

However, the specific reasons for SEBI’s action have not been disclosed publicly. The decision has came after the regulator saw irregularities in ACL’s compliance with regulatory standards or its conduct in the debt market.

SEBI has directed the Axis Capital board to respond to the observations outlined within 21 days.