SEBI finds Basan Financial failed to maintain ₹5 crore net worth

SEBI examined whether the firm failed to meet statutory obligations such as maintaining net worth, submitting reports, and adhering to code of conduct standards.

Who it concerns: Basan Financial Services Limited (SEBI Registration No. INM000011989)

What SEBI found or ordered

• SEBI found that the Noticee failed to maintain the requisite minimum net worth of five crore rupees.
• SEBI found that the Noticee failed to submit Half Yearly Reports during the inspection period (April 2022 to June 2023).
• SEBI found that the Noticee failed to ensure Key Managerial Personnel and Compliance Officer held necessary NISM Certifications.
• SEBI found that the Noticee failed to formulate an Internal Code of Conduct and maintain a structured digital database for insider trading compliance.
• SEBI found that the Noticee made delayed fee payments for 2017-2020 and has not paid fees since July 2020.
• The Designated Authority recommended the cancellation of the Noticee's certificate of registration.
• The Noticee argued it had ceased operations since 2014 and had applied for voluntary surrender of registration in January 2020, which was not processed.

Also in the document

• The Noticee stated it had not undertaken any merchant banking activity since 2014 due to commercial non-viability.
• The Noticee claimed it had repeatedly sought to surrender its registration since 2020 but its application was not processed by SEBI.
• The inspection period covered by SEBI was from April 01, 2022, to June 30, 2023.