Axis Max Life Insurance Company Limited

Without it, insurers would bid up commissions and policy holders would end up funding the bidding war.

So the Max Life Axis Bank arrangement is a case study in what happens when a bank wants more than the cap allows.

So in 2010, Max New York Life and later Max Life Insurance signed a 10-year agreement making Axis Bank its distributor.

Now, Axis was then India's third largest bank and good at selling insurance.

But before this, Max Life was doing only about 4% of its new business through banks.

Alongside that distribution deal, a second set of transactions began.

In December 2011, Max Life issued 7.66 crore shares to Axis Bank at rupees 10 each.

Now, this may not have reflected its actual worth.