Sebi bans Pawan Bansal from acting as market intermediary

Markets regulator Sebi today barred Pawan Bansal, named in the Syndicate Bank bribe-for- loan-scandal, from associating with any intermediary, saying he is no longer 'fit and proper' person to carry out merchant banking activities

PTI| Last Updated: Mar 18, 2016, 19:57 PM IST

New Delhi: Markets regulator Sebi today barred Pawan Bansal, named in the Syndicate Bank bribe-for- loan-scandal, from associating with any intermediary, saying he is no longer 'fit and proper' person to carry out merchant banking activities.

Bansal headed and held 100 per cent stake in Altius Finserv, which is into merchant banking and related activities.

The Securities and Exchange Board of India (Sebi) said that prohibition on Bansal will continue till such time he is freed by the Competent Court of the charges alleged in the FIR registered against him by the CBI on August 1, 2014.

The regulator, in August 2014, took on record several newspaper clippings reporting the Syndicate Bank bribery case involving Bhushan Steel, which resulted in the arrest of Bansal alongwith S K Jain (Chairman and Managing Director, Syndicate Bank) and nine other individuals, by CBI.

Bansal was arrested on alleged charges of taking a bribe of Rs 50 lakhs to enhance the credit limit of two companies.

Sebi said that important facts such as registration of FIR and subsequent arrest of Bansal, cannot be ignored while considering the eligibility of Altius Finserv to continue as a merchant banker.

The regulator said that Bansal will not be associated with any registered intermediary in order to maintain the integrity of the securities market and also for the protection of interests of investors in securities market.

"I, therefore, have no hesitation in concluding that Bansal and Altius Finserv do not comply with the eligibility criteria of being a 'fit and proper person' in accordance with the Merchant Bankers Regulations read with the Intermediaries Regulations," Sebi Whole Time Member S Raman said in his order.

In an order passed today, Sebi said "Bansal, Managing Director and Key Management Person of Altius Finserv, is restrained from associating himself, either directly or indirectly, with any intermediary or holding any controlling shareholding in any intermediary till such time he is freed by the Competent Court, of the charges alleged in the FIR registered against him, by the CBI on August 1, 2014."