Axis Bank Dismisses Allegations on Max Life Stake Acquisition, Asserts Regulatory Compliance

16 Feb 2024 , 04:13 PM

Axis Bank responds to a public interest writ petition filed regarding its stake acquisition in Max Life Insurance. Denies allegations as ‘unfounded’ and clarifies obtaining all necessary regulatory approvals.

Expects no material impact and pledges adherence to legal and regulatory standards.

Legal proceedings initiated against Union of India, Axis Bank, Axis Securities, Axis Capital, and others. Next hearing scheduled for March 13.

Allegations include Axis Bank making ₹5,100 Crore as ‘undue gains’ in Max Life shares. Accusations of fraud against Max Life and Max Financial Services for non-transparent share transactions.

Contentions state Axis Group bought 12.002% stake in Max Life for ₹736 Crore below fair market value. Criticism of IRDAI penalty on Max Life as ‘negligible’ compared to total fraud amount.

Max Life asserts transactions post approval from RBI, IRDAI, CCI, with adequate disclosures.

SEBI seeks details/clarifications regarding transactions involving Max Life shares with Axis Bank. Max Life believes no legal or regulatory anomaly, commits to legal recourse.

PIL demands investigation by a committee of experts. Criticism of Enforcement Directorate’s inaction compared to smaller offences.

Axis Bank and entities acquired over 12% stake in Max Life in 2021. IRDAI approves additional ₹1,612 Crore infusion by Axis Group into Max Life. Axis Bank’s shareholding to reach 19.02%, with the right to acquire additional 0.98% stake from Max Financial.

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