INSUBCONTINENT EXCLUSIVE:
Additionally, the revenue generated from its debt business in FY 2023-24 accounted for only 5 per cent of the company's total income (Photo:
Reuters)2 min read Last Updated : Sep 20 2024 | 2:32 PM IST
Axis Capital on Friday said it is exploring legal remedies against markets
regulator Sebi's order restraining the firm from taking up new assignments as a merchant banker for the debt segment.
In a statement, the
company clarified that Sebi has not imposed any other restrictions on Axis Capital and it will continue to operate all other business
activities in the ordinary course in equity capital markets, infrastructure investment trusts (InvITs), real estate investment trust
(REITs), M-A, private equity and institutional equities domain.
On Thursday, the Securities and Exchange Board of India (Sebi), in an
interim ruling, prohibited Axis Capital from taking up any new assignments in the capacity of a merchant banker, arranger or underwriter for
any issue or offer for sale of securities in the debt segment
NCDs (non-convertible debentures) in the guise of underwriting, which it was not permitted to do under the existing regulatory framework
Such activity poses risk to the financial system as it can potentially disrupt the orderly functioning of the market," Sebi stated.
Axis
Capital, a subsidiary of Axis Bank, clarified that it has not taken on any new assignments in the debt segment for over a
year.
Additionally, the revenue generated from its debt business in FY 2023-24 accounted for only 5 per cent of the company's total
income.
"Based on the merits of the case and prevailing laws, Axis Capital is currently evaluating all available legal remedies regarding
Sebi's interim order," the company said in a statement.
The firm further emphasised its commitment to compliance, risk management, and
client interests.
"ACL believes in ensuring the highest standard of compliance with the extant regulations and is committed to adhering
with all legal and regulatory requirements at all points in time
ACL has a robust business pipeline and will continue to deliver best-in-class execution for our clients," it added.(Only the headline and
picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated
feed.)First Published: Sep 20 2024 | 2:32 PMIST
