Sebi Revokes Basan Financial Services' Merchant Banking Licence Due to Violations

Original: Sebi cancels Basan Financial Services licence over regulatory violations

Business Standard•Apr 7, 20262 min

In a Nutshell

The Securities and Exchange Board of India (Sebi) has revoked the merchant banking licence of Basan Financial Services, based in Hyderabad, due to multiple regulatory violations. The decision, effective April 7, highlights the company's failure to comply with key norms during inspections from April 2022 to June 2023.

Key Points

01Sebi cancelled Basan Financial Services' merchant banking licence over regulatory violations.
02The decision was made following inspections revealing non-compliance with key norms.
03The inspection period lasted from April 2022 to June 2023.
04Basan Financial Services is based in Hyderabad, India.
05Other financial updates include Om Power Transmission's upcoming IPO and InCred's fund closure.

In-Article Ad

Full Summary

The Securities and Exchange Board of India (Sebi) has cancelled the merchant banking licence of Basan Financial Services, a Hyderabad-based firm, due to a series of regulatory violations. In a final order dated April 7, Sebi cited the company's persistent non-compliance with essential norms during the inspection period from April 2022 to June 2023. This decision underscores the importance of adherence to regulatory standards in the financial sector. In other financial news, Om Power Transmission is set to launch its initial public offering (IPO) on April 9, aiming to raise ₹150 crore (approximately $18 million USD), while InCred Capital has successfully closed its first special opportunities credit fund at ₹1,500 crore (approximately $180 million USD), attracting significant commitments from various investors.

Key Figures

₹150 crore

Total amount targeted in Om Power Transmission's IPO

₹1,500 crore

Total raised by InCred Special Opportunities Fund-I

In-Article Ad

Why It Matters

The cancellation of Basan Financial Services' licence may affect its clients and investors, potentially leading to financial losses for stakeholders involved.

Who is affected

clients and investors of Basan Financial Services

What to know

Clients should seek alternative financial services and stay informed about their investments.

FAQ

The licence was revoked due to a series of regulatory violations and persistent non-compliance with key norms.

The IPO will open on April 9 and close on April 13, with a price band set at ₹166-175 per share.

✦