Axis Bank plans reverse merger with Max Financial Services

Axis Bank is planning to increase its stake in Max Life Insurance ahead of a proposed reverse merger with Max Financial Services. According to Axis Max Life CEO Sumit Madan, the merger is intended to allow Axis Max to list directly on stock exchanges. Madan expects formal clarity on the merger structure within 60 to 90 days, with the full process estimated to take 12 to 18 months. He noted that recent regulatory changes have simplified the navigation of the reverse merger process.

Separately, the Securities and Exchange Board of India (SEBI) has dismissed allegations of fraud and disclosure violations involving Max Financial Services, Max Life, and Axis Bank entities. The investigation had looked into transactions occurring between 2010 and 2022, specifically regarding the sale and repurchase of equity shares. SEBI concluded that the alleged scheme, which claimed a loss of ₹3,911.95 crore to Max Financial Services, was not substantiated.