SEBI drops case against Max Financial, Max Life, Axis entities in ₹3,911 crore case

The Securities and Exchange Board of India (SEBI) has dismissed a case against Max Financial Services, Max Life Insurance, and Axis Group entities regarding a disputed ₹3,911 crore shareholder loss. SEBI found that the disclosure lapses and fraudulent scheme allegations were not substantiated. The case stemmed from a Show Cause Notice (SCN) issued in October 2024, following an investigation into transactions involving the Max and Axis entities between 2009-10 and 2021-22.

Seven individuals, including Max Group founder and Chairman Analjit Singh, had their proceedings dropped. The investigation examined transactions from 2010, 2015, and 2020, with allegations that Max Financial failed to disclose the transactions adequately and that a fraudulent scheme benefited Axis Bank at the expense of Max entities and their shareholders.

SEBI ruled that the transactions did not violate specific provisions and that there was no evidence of manipulation of price or volume or interference with market integrity. Additionally, the charges against Max Financial's key managerial personnel were dismissed due to the lack of evidence of material violations. SEBI noted that 13 non-executive/independent directors of Max Financial filed settlement applications, while the remaining proceedings were kept in abeyance.