Axis Bank and its subsidiaries have received a show-cause notice (SCN) from the Securities and Exchange Board of India, the capital market regulator, in connection with a stake purchase in Max Life Insurance.
Axis Bank stated in a regulatory filing that the SCN was sent by email on October 25. According to the statement, the Sebi sent a SCN via email to Axis Bank and its subsidiaries, Axis Securities Limited and Axis Capital Limited.
Since the aforementioned transactions were carried out with the necessary regulatory approvals, the SCN is undergoing evaluation, and replies will be filed with Sebi. The controlling company of Max Life Insurance, Max Financial Services Limited, also said that a few of the company’s directors and important managerial staff—in each case, “both past and present”—had received a SCN via email from Sebi.