Max Financial Services on Thursday issued a clarification on share sale transactions involving Axis Bank and Max Life Insurance Company Limited (‘Max Life’).
The company dismissed reports of violation of norms in the Axis-Max Life deal, as reported by CNBC TV18 on August 31, 2023.
“In this regard, we would like to state that following the orders passed by IRDAI wrt transactions involving shares of Max Life between the Company and Axis Bank Limited, SEBI had sought various details/clarifications from the Company,” the company said.
It further added, “The requisite details have been submitted by the Company to SEBI for its consideration. The Company has not heard anything from SEBI in this regard.”
The company also stated that it had taken appropriate approvals from its shareholders in 2020 (with 99.99% affirmative voting from the shareholders) for cementing the long-term strategic partnership with Axis Bank in respect of its life insurance subsidiary, viz., Max Life which included certain transfer of shares of Max Life. It said all adequate disclosures have been made by the Company.
Earlier today, CNBC had reported, citing sources, that the Max-Axis deal is being investigated by markets regulator, SEBI, and that it has reached an advance level. It also stated that an action was likely to be taken on violation of norms in the deal.
The media report also said that IRDAI had penalised both companies on charges of valuation discrepancy and making undue gains.
