Mumbai, Aug. 24 -- The Securities and Exchange Board of India (Sebi) has disposed of proceedings against Max Financial Services Ltd (MFSL), Max Life Insurance Co. Ltd (MLIC) and Axis group entities, noting that allegations of fraud and inadequate disclosures were not established.

The order relates to three arrangements between MFSL, MLIC, and Axis Bank and its group entities in 2010, 2015 and 2020. Sebi had examined whether the transactions formed part of a scheme to provide benefits to Axis beyond permissible insurance commissions, and whether MFSL had failed to make adequate and timely disclosures.

The regulator had alleged that shares were issued or sold to Axis at par or at discounted valuations, and bought back later at higher pric...