The Securities and Exchange Board of India (Sebi) has temporarily barred Axis Capital Limited (ACL) from debt merchant banking activities. Sebi's investigation revealed ACL provided an unauthorized guarantee for non-convertible debentures (NCDs),

After an inspection by the regulator, it was found that Axis Capital had provided guarantees for the redemption of NCDs of Sojo Infotel Pvt. Ltd, which is not permitted for merchant bankers.

Sebi initiated action into Axis Capital after publication of a report titled ‘Is Axis Capital an Investment Bank or a Hedge Fund?’ authored by a research analyst.

In an interim order issued on September 19, the Securities and Exchange Board of India (Sebi) has also asked ACL to reply within 21 days to the observations made in the order.

The Securities and Exchange Board of India has prohibited Axis Capital, a subsidiary of Axis Bank, from taking new assignments as a merchant banker or underwriter in the debt segment due to alleged regulatory violations,

The Securities and Exchange Board of India (SEBI) has restrained Axis Capital (ACL), a wholly-owned subsidiary of Axis Bank, from taking any new assignment as a merchant banker, arranger, or underwriter in the debt segment for alleged violations of norms,

India's markets regulator on Thursday barred investment bank Axis Capital from acting as a merchant banker for new debt issues for allegedly violating rules, according to an interim order on the regulator's website.

India’s capital market regulator has barred Axis Capital Ltd. from acting as a manager for new offerings of debt by Indian companies, the latest crackdown in the country’s securities market.

Sebi has prohibited Axis Capital from operating as a merchant banker for debt issuances and barred it from acting as an arranger or underwriter for any debt segment securities. The action follows Axis Capital’s involvement in Sojo Infotel’s non-convertible debentures offering,