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Axis Bank to reworks Max Life Insurance share buy

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Based on the censure from the insurance regulator, Axis Bank Limited and its subsidiaries Axis Securities Ltd and Axis Capital Ltd have entered into revised agreements with Max Financial Services Ltd agreeing that the valuation for the right to acquire the balance 7.00% equity stake of Max Life would be at Fair Market Value using Discounted Cash Flows (instead of valuation as per Rule 11UA of the Income Tax Rules, 1962). Earlier Axis Entities had collectively acquired 12.99% of the equity share capital of Max Life In October 2022, insurance sector regulator IRDAI had imposed a penalty of INR 3 crore on Max Life and INR 2 crore on Axis Bank. It said that there was no uniform basis for determination of price transfer of shares, which led to Axis Bank, a corporate agent of Max Life Insurance, receiving significant undue monetary gains from the trade of shares.