Insider Trading: Axis Bank, United India Insurance Settle Cases with SEBI

Axis Bank and its promoter, United India Insurance Company, paid more than 51.5 lakh to the Securities and Exchange Board of India (Sebi) on alleged disclosure lapses.

The Stock and Exchange Board of India launched an investigation into the case of Axis Bank Limited. In the course of that inquiry, it was noted that the applicant had withheld disclosure, as required, of Insider Trading in respect of trading in the applicant's securities by United India Insurance Company Limited, the sponsoring body of the applicant.

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It was noted in the inquiry that, during the period from 1 October 2017 to 30 September 2018, the volume of trades by UIICL in the securities of the claimant on each trading day amounted to more than ten lakh rupees.

The claimant was expected to report the same details to the Stock Exchange within two trading days of receipt of the disclosure from UIICL. However, the same was only revealed to the Stock Exchange by the claimant on 16 October 2020 with a delay of 1072 - 1080 days.

In 2020 the regulator released a summary settlement notice to the companies, claiming that the cases should be concluded on the submission of settlement applications and the remittance of settlement sums of 41,43,750 by Axis Bank and 10,13,906 by United India Insurance Company.

The claimant filed and remitted an appeal for arbitration, proposing to settle without accepting or rejecting facts of evidence and assumptions.

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