Axis Bank, along with its subsidiaries Axis Securities Limited and Axis Capital Limited, is currently reviewing a show cause notice issued by Sebi regarding its recent stake acquisition in Max Life Insurance.
The bank is preparing a response asserting that the transactions were conducted with the necessary regulatory approvals.
Max Financial Services Limited, the parent company of Max Life Insurance, has also confirmed that several current and former directors, as well as key managerial personnel, have received similar notices from Sebi.
Earlier this year, Axis Bank's board approved a proposal to increase its stake in Max Life from 19.02% to 19.99%, a move that was sanctioned by the Insurance Regulatory and Development Authority of India (IRDAI), allowing Axis entities to collectively hold up to 20% in the insurance firm.