New Delhi: Sebi on Friday disposed of adjudication proceedings against Axis Capital, saying the alleged violation of the merchant banker norms could not be established against it with respect to foreign currency convertible bonds issuance by SpiceJet NSE 0.70 % India Ltd back in 2010.
It was alleged that Axis Capital (formerly known as Enam Securities) had amended the Share Purchase Agreement (SPA) on October 5, 2010, after the issuance of "observation" letter by Sebi on October 4, 2O10.
The share purchase agreement was entered into between acquirers -- KAL Airways and Kalanithi Maran -- SpiceJet and four WLR entities -- WLL Recovery III Ltd, WLR Recovery IV/ ESC Ltd, India Asset Recovery Fund Ltd and WLR/GS India Ltd.
It was alleged that the merchant banker failed to inform Sebi about the important information regarding amending the SPA, which was done post issuance of observations and that the information was included in the letter of offer received by the regulator on October 14, 2010 and issued to shareholders without waiting for the regulator's comments.
The letter of offer pertained to the foreign currency convertible bonds and the SPA was with respect to the bonds' issuance.
Consequently, it was alleged that Axis Capital failed to perform its duties as a merchant banker.
28/05/21 PTI/Economic Times
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