AXIS/CO/CS/383/2024-25
September 19, 2024
Dear Sir/Madam,
Sub.: Intimation / clarification in relation to Interim Order
dated September 19, 2024, issued to Axis Capital Limited, a
subsidiary of Axis Bank Limited
The Securities and Exchange Board of
India (SEBI) has issued an Interim Order dated September 19, 2024
(Interim Order) against our wholly owned subsidiary Axis Capital
Limited (ACL) restraining ACL, as an
interim measure and pending inspection of ACL by SEBI, from taking
up any new assignments in the capacity of a merchant banker,
arranger or underwriter for any issue / offer for sale of
securities limited to the debt segment.
ACL 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.
SEBI has not imposed any other
restrictions on ACL, and ACL will continue to operate all other
business activities, including in the equity capital markets,
M&A, private equity, and institutional equities domain (other
than performing merchant banker/arranger/underwriter related
activities for any issue / offer for sale of securities in the debt
segment).
ACL has already discontinued and has
not taken any new assignments as a merchant banker, arranger, or
underwriter for any issue / offer for sale of securities in the
debt segment in over a year now and is of the view that there is no
material impact on ACL on account of the Interim Order. Based on
the merits of the matter and prevailing law, ACL 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 ACL since ACL's profit after tax (PAT) for FY
23-24 was ~0.70% of Axis Bank's consolidated PAT. Further,
the income from the debt business of ACL for FY 23-24 was approx.
5% of the total income of ACL.
Axis Bank and its subsidiaries have
the highest regard for all regulatory authorities and are committed
to adhering with highest standards of legal and regulatory
compliance.
This is for your information and
records.
Thanking You.
Yours faithfully,
For
Axis Bank Limited
Sandeep Poddar
Company Secretary
http://www.rns-pdf.londonstockexchange.com/rns/9561E_1-2024-9-19.pdf