Big fine imposed on Axis Bank, Sebi punished in this case

Axis Bank has been fined Rs. Capital markets regulator SEBI has imposed a fine of Rs 5 lakh on this private bank in a case related to the issue of debt securities between 2016 and 2019 where Axis Bank acted as a merchant banker. According to Sebi, during investigation, it was found that Axis Bank, acting as a merchant banker, had acquired securities in 9 public debt issues.

Sebi said Axis Bank failed to provide details of transactions relating to acquisition of securities in those deals. SEBI said that every merchant banker will have to furnish full details of the transaction relating to the acquisition of securities. It is an accepted fact that the bank has failed to furnish the credit details of the companies during August 2016 to August 2019. Axis Bank is directed to pay the penalty amount within 45 days from the date of this order.

Besides this, SEBI has imposed a total fine of Rs 10 lakh on two entities on the BSE for indulging in non-essential trades in the illiquid stock options segment. In two separate orders, the regulator imposed a fine of Rs 5 lakh each on Dee Kartavya Finance Ltd and Rajendra Prasad Agarwal HUF.

The Securities and Exchange Board of India (SEBI) had probed the trading activities of certain entities engaged in illiquid stock options on the BSE from April 2014 to September 2015. Upon investigation, it was revealed that these entities were among those who had executed reversal trades in the segment creating artificial volume. By indulging in such trades in stock options, he violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Rules.