Capital markets regulator reprimands Axis Capital over guaranteed returns structured as underwriting in NCD issuance
SEBI censured Axis Capital for structuring a guarantee as underwriting in connection with a ₹260 crore non-convertible debenture issue by Sojo Infotel. The regulatory action highlights strict scrutiny on merchant banking and underwriting practices.
Effective Not specified in the update
For professionals: - Review all underwriting agreements to ensure transparency and strict adherence to regulatory standards - Vet debt issuance contracts with legal advisors to eliminate clauses resembling prohibited arrangements
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