Axis Capital, Axis Bank said, has already discontinued and has not taken any new assignments in the debt segment in over a year now. 
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Axis Capital, Axis Bank said, has already discontinued and has not taken any new assignments in the debt segment in over a year now. Shares of Axis Bank Ltd are be in focus on Friday morning after the private lender said SEBI has issued an interim order against its wholly-owned subsidiary Axis Capital, restraining it 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, limited to the debt segment.
The measure is interim amid the pending inspection of the subsidiary by the market regulator, Axis Bank said while insisting that the order may not have any material impact on its financials.
"Axis Capital is of the view that its merchant banker, arranger and underwriter related activities for any issue / offer for sale of securities in the debt segment were bona-fide and in compliance with all applicable regulatory provisions; and further no loss has been caused to any investor or market participant from such activities as on date," Axis Bank said.
Axis Bank said SEBI has not imposed any other restrictions on Axis Capital and that the arm will continue to operate all other business activities, including in the equity capital markets, M&A, private equity, and institutional equities domain.
Axis Capital, Axis Bank said, has already discontinued and has not taken any new assignments as a merchant banker, arranger, or underwriter for any issue or for sale of securities in the debt segment in over a year now.
It is of the view that there is no material impact on Axis Capital on account of the Interim Order. Based on the merits of the matter and prevailing law, Axis Capital is evaluating all available legal remedies in respect of the Interim Order. SEBI has not passed any adverse direction or order against Axis Bank Limited.
Axis Bank is of the view that there is no material impact on the Bank on account of the Interim Order against Axis Capital since its profit after tax (PAT) for FY 23-24 was 0.70 per cent of Axis Bank’s consolidated PAT.
Further, the income from the debt business of Axis Capital for FY 23-24 was nearly 5 per cent of the total income of Axis Capital.
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