IRDAI seeks SEBI’s assistance in Axis Bank-Max Life deal

1 Sep 2023 , 01:21 PM

The Insurance Regulatory and Development Authority of India (IRDAI) has written to the Securities and Exchange Board of India (SEBI) to investigate the Axis Bank-Max Life Insurance transaction.  Max Financial Services has a subsidiary called Max Life Insurance.

The insurance regulator has requested SEBI to investigate whether there were any irregularities in estimating the fair market value of Max Life Insurance shares.

Previously, only IRDAI was investigating the March 2021 share transactions and assessed a fine, but the regulator has now enlisted the help of SEBI as well.

This comes after Axis Bank’s board approved increasing its investment in life insurance from 9.9% to 16.22% in an August 9 filing, bringing the total holding of Axis businesses to 19.02%.

The bank said it would invest Rs 1,612 crore in Max Life to purchase 14.25 crore shares at Rs 113.06 each, a premium of Rs 103.06 per share over the face value of Rs 10 each.

According to the filing, the transaction was made to boost the bank’s position in the life insurance market.

For feedback and suggestions, write to us at [e-mail]