SEBI Tightens Grip on Axis Capital's Debt Segment Activities

SEBI has modified its interim order against Axis Capital Ltd, restricting it from engaging in debt transactions that involve providing credit risk cover or guarantees. The decision came after allegations that Axis Capital violated regulations with non-convertible debentures issued by Sojo Infotel Pvt. Ltd.

The Securities and Exchange Board of India (SEBI) has modified its interim order concerning Axis Capital Ltd, barring the company from engaging in certain activities in the debt segment.

This decision stems from accusations that Axis Capital violated Merchant Banker Regulations concerning non-convertible debentures from Sojo Infotel Pvt. Ltd., particularly by offering guarantees outside the authorized scope.

SEBI's Whole Time Member, Ashwani Bhatia, expressed willingness to modify existing restrictions but maintained the prohibition on activities related to the alleged violations.

(With inputs from agencies.)