SEBI Drops Fraud, Disclosure Proceedings Against Max Financial & Axis Bank In Max Life Deal Case

The Securities and Exchange Board of India (SEBI) has dropped proceedings against Max Financial Services, Max Life Insurance, Axis Bank, Axis Capital, Axis Securities and seven individuals in a case concerning transactions between the companies.

The regulator’s investigation covered transactions from FY10 to FY22 and examined alleged disclosure lapses, securities law violations and a possible fraudulent scheme involving Max Life shares. SEBI said the allegations were not established. It found no evidence that the entities had concealed material information, manipulated share prices or volumes, or created an artificial market. The regulator also examined share sale and buyback arrangements in 2010, 2015 and 2020. While SEBI said some disclosures by Max Financial could have been more comprehensive, it held that liability could not be established under the provisions applicable at the time.

The proceedings followed a show-cause notice issued in October 2024. SEBI concluded that the allegation of a scheme benefiting Axis entities at the expense of Max Financial shareholders was not proved.