Restrictions on Pawan Bansal to continue, says Sebi

Sebi today said Pawan Bansal named in the Syndicate Bank bribe-for-loan-scandal will stay barred from associating himself with any market intermediary and rejected his plea seeking relaxation in this regard.
According to the regulator, the circumstances that led to action against Bansal in March this year remain the same and no new facts have been submitted by him or Altius Finserv where he is the managing director.
Bansal continues to hold almost 100 per cent stake in Altius Finserv, which is into merchant banking and related activities. He also continues to be the MD and key management person of the company.

The Securities and Exchange Board of India (Sebi), in March this year, had barred Bansal from associating himself with any intermediary, saying he was no longer 'fit and proper' person to carry out merchant banking activities.
The regulator had also said 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 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 along with 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 lakh to enhance the credit limit of two companies.

In an order passed today, Sebi noted that the circumstances under which the order dated March 17, 2016, was passed continue to remain the same as no new facts have been submitted by Altius Finserv and Bansal.
"In other words, Bansal continues to remain the MD and key management person of Altius Finserv. He is also the substantial shareholder in Altius Finserv and in that capacity, is in a position to exercise significant control and influence over that registered intermediary," it added.

Accordingly, Sebi Whole-Time Member S Raman said: "I find that the order dated March 17, 2016, requires no modification at this juncture insofar as the directions (are concerned)."
However, he clarified that in case of any change in the factual circumstances, Altius Finserv may approach Sebi with an application for a Certificate of Registration to act as an intermediary and Sebi would consider the same on merits.
According to Sebi, any entity granted registration by Sebi under the Merchant Bankers Regulations to act as such has to ensure that its business activities in the securities market are conducted with high standards of market practice and integrity.