Corporate guarantee released by Axis Bank; guarantor's obligation ceases, underlying credit facility continues

Smart Finsec Ltd says it has received a release letter from Axis Bank Ltd for the corporate guarantee it had given for credit facilities availed by Smart Equity Brokers Pvt Ltd. SFL's obligation under that guarantee has ceased.

Tue 6 Oct 2026

Release letter issuer

Axis Bank Ltd

Guarantee obligation status

SFL's obligation under that corporate guarantee has ceased

Underlying credit facility

The underlying credit facility arrangement continues in force

Corporate guarantee released

Smart Finsec Limited (SFL) has informed the stock exchange that it has received a release letter from Axis Bank Limited in respect of a corporate guarantee it had issued.

What a corporate guarantee is

A corporate guarantee is a promise by one company to stand behind a loan taken by another borrower. If that borrower does not repay, the guarantor can be called upon to pay. Until it is released, it stays as a contingent obligation for the guarantor, meaning a possible future payment that arises only if things go wrong.

What the update says

• The corporate guarantee was provided by SFL in connection with credit facilities availed by Smart Equity Brokers Private Limited.
• Axis Bank Limited has issued a release letter in respect of that corporate guarantee.
• Following the release letter, SFL's obligation under the corporate guarantee has ceased.
• The underlying credit facility arrangement continues to remain in force, and only SFL's corporate guarantee no longer subsists.

The background

The company refers to its earlier letters dated March 25, 2025 and January 16, 2026 on the issuance of this corporate guarantee, and this intimation follows those.

How this can be perceived

The release means SFL is no longer a guarantor for that facility, and its obligation under the guarantee has ended. Investors may read this as a reduction in a contingent obligation for SFL. At the same time, the update states that the credit facility given to the borrower continues in force, so this disclosure is about the guarantee ending, not about the facility itself ending.

This is an intimation under Regulation 30 and 30A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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