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MUMBAI: Markets regulator
Sebi
on Thursday prohibited
Axis Capital
from functioning as a
merchant banker
for
debt issuances
. It also barred Axis Capital from acting as “arranger or underwriter for any issue or offer for sale of securities in the debt segment, till further order.”
The Sebi directive stated that Axis Capital served as the merchant banker for
Sojo Infotel
‘s
non-convertible debentures
offering in 2021.
Additionally, it furnished a guarantee for Sojo’s NCD issuance amounting to Rs 260 crore. Following Sojo’s inability to redeem the NCDs fully, Axis Capital was obligated to settle the outstanding sum of approximately Rs 167 crore.
The regulator’s investigations into the matter and the subsequent order were based on an article by Hemindra Kishen Hazari, a Sebi-registered analyst, who had published a piece on Axis Capital on Jan 26, 2024, the order said.
Sebi held the view that Axis Capital operated as a banker under the guise of a merchant banker.
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