IRDAI writes to SEBI to examine Axis Bank-Max Life share deal

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Insurance Regulatory and Development Authority (IRDAI ) writes to SEBI to examine the Axis Bank-Max Life share deal, reported CNBC-TV18 on October 31.

According to the report, the IRDAI wrote to SEBI seeking its view on the fair value, wrongdoing or any security regulations violation of the deal.

Earlier on October 14, the insurance regulatory stated that historical transactions between Axis Bank and Max Financial are in violation of the IRDAI code, and asked Axis Bank to pay Rs 3 crore penalty in 21 days, which included Rs 1 crore penalty on Max Life Insurance.

On October 17, the penalty was increased to Rs five crore.

However, on October 20, Axis Bank chief Amitabh Chaudhry asserted that the lender has followed all rules and regulations in the deal to acquire a 20 percent stake in Max Life Insurance.

SEBI, IRDAI and Axis Bank have not responded to CNBC-TV18’s queries yet.