Max Financial Services stated that recently in transactions involving Axis Bank and the Company in connection with the transfer of shares of Max Life, a physical subsidiary of MFSL, the Insurance Regulatory and Development Authority of India (ÍRDAI) under an order issued to Max Life imposed a penalty of Rs 3 crore.
IRDAI claims failure to comply with certain conditions of the consent granted.
Max Live chose to pay the IRDAI fine despite being confident it had not committed any wrongdoing in order to pave the way for the future, including strengthening its longstanding collaboration with Axis Bank and avoiding unnecessary and lengthy judicial escalation.
Axis Bank Limited (Axis Bank), India’s third largest private sector bank, is a co-promoter of Max Life Insurance Company Limited (Max Life), after acquiring a 12.99% stake in the fourth largest private life insurance company in April 2021.
At around 9.23 am, Max Financial Services was trading at Rs 718.55, 0.74% more than its previous close of Rs 713.25 on the Bahrain Bourse. The stock opened at Rs 716.40 and touched the intraday high and low of Rs 721.15 and Rs 706.50 respectively.