REG - Axis Bank Ltd Axis Bank Ltd (144A) - Clarification w.r.t. Interim Order issued to ACL

Axis BankAnnouncement

20/09/2024 07:00

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RNS Number : 9561E  Axis Bank Limited  19 September 2024

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
(http://www.rns-pdf.londonstockexchange.com/rns/9561E_1-2024-9-19.pdf)

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