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

This is a final order by SEBI regarding Basan Financial Services Limited, a registered Merchant Banker, concerning alleged violations of compliance requirements under Merchant Banker and Insider Trading regulations. SEBI examined whether the firm failed to meet statutory obligations such as maintaining net worth, submitting reports, and adhering to code of conduct standards.

Basan Financial Services Limited (SEBI Registration No. INM000011989)

• 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.

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