Axis Bank fined heavily; Sebi Imposes Heavy Penalty

Axis Bank has been fined numerous lakh rupees. SEBI, the capital markets regulator, fined this private bank Rs.5 lakh in a case involving the issuance of debt instruments between 2016 and 2019, in which Axis Bank functioned as a merchant banker. During the examination, Sebi discovered that Axis Bank, acting as a merchant banker, had bought securities in nine public debt issuance.

According to Sebi, Axis Bank neglected to furnish details of transactions linked to the acquisition of securities in such transactions. According to SEBI, every merchant banker would be required to provide full details of any transaction involving the acquisition of securities. It is well acknowledged that the bank neglected to provide the credit details of the companies from August 2016 to August 2019. Axis Bank has 45 days from the date of this order to pay the penalty sum.

Furthermore, SEBI imposed a total fine of Rs.10 lakh on two BSE businesses for engaging in non-essential trading in the illiquid stock options area. The regulator fined Dee Kartavya Finance Ltd and Rajendra Prasad Agarwal HUF Rs.5 lakh apiece in two separate rulings.

From April 2014 to September 2015, the Securities and Exchange Board of India (SEBI) investigated the trading operations of some businesses engaging in illiquid stock options on the BSE. Following an inquiry, it was discovered that these entities were among those who had carried out reversal trades in the section, resulting in false volume. He breached the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Rules by engaging in such stock option trades.