SEBI levies 5 lakh Penalty on Axis Bank

Current Context: SEBI has levied a penalty of INR 5lakh on Axis Bank for violation of Merchant Banker Regulations.

• SEBI imposed a 5 lakh penalty on Axis Bank for the violation of Regulation 27 of SEBI (Merchant Bankers) Regulations, 1992.
• Regulation 27 states – “Information to the Board. - Every merchant banker shall submit to the Board complete particulars of any transaction for the acquisition of securities of any body corporate whose issue is being managed by that merchant banker within fifteen days from the date of entering into such transaction.”
• In its order, SEBI specified that during the period August 2016- August 2019, Axis Bank bought debt papers of nine companies of which it was a merchant banker. Further, as per the provision of Merchant Banker regulations, it failed to inform the same SEBI within 15 days. Hence the penalty.
• Static Information:
• SEBI – Securities market regulator of India
• Nodal Ministry – Ministry of Finance
• HQ – Mumbai
• Founded on – 12 April 1992
• Chairperson – Ms. Madhabi Puri Buch
• Axis Bank –
• HQ- Mumbai
• CEO – Amitabh Chaudhry

Question:

Q.1 Recently, SEBI imposed a penalty on which bank for non-compliance with Merchant Banker Regulations?
a. Federal Bank
b. Bandhan Bank
c. Axis Bank
d. Kotak Mahindra Bank