Former Union Minister Subramanian Swamy made allegations against SEBI chief Madhabi Puri Buch in relation to the Axis-Max Life deal. In a recent hearing at the Delhi High Court regarding the case, Swamy alleged a lack of action from the market regulator due to potential conflicts of interest. The case involves regulatory scrutiny of transactions between Axis Bank and Max Life Insurance. It came into the limelight due to allegations that SEBI's actions might be compromised.
In an affidavit dated March 13, Swamy highlighted that the SEBI chairperson previously served as a director at Max Healthcare Institute Ltd. from February 2015 to April 2017. He argued that this past affiliation might have contributed to a delay in SEBI’s investigation into the alleged misconduct. Moreover, Axis Bank has denied the allegations, reaffirming its commitment to transparency and fairness.
Sebi's response
SEBI has maintained that its inquiry is progressing. In an affidavit, it asserted that a preliminary examination, prompted by IRDAI, is at an advanced stage. The regulator also acknowledged forwarding a letter from the petitioner, dated October 19, 2023, to RBI for further consideration, given the involvement of Axis Bank and its subsidiaries.
What did the court say?
The court noted that, despite this personal allegation against the SEBI chairperson, she had not been named as a respondent in the petition. The court emphasized that despite any prior professional connections, SEBI remains obligated to regulate the case according to legal standards. The court also dismissed Swamy's PIL but directed the regulatory bodies to expedite their investigations and ensure compliance with the law.
Swamy's allegations
The BJP leader and former Union minister has accused Axis Bank and its affiliates of attempting to acquire a controlling stake in Max Life Insurance through unfair means. He claimed that Axis Bank’s board approved a preferential allotment of Rs 1,612 crore to Max Life, which increased the bank’s stake in the insurer to 16.22 percent, with a collective stake of 19.02 per cent among Axis entities.
