SEBI Bans promoter of Bank of Rajasthan the Tayal family

SEBI Bans promoter of Bank of Rajasthan  the Tayal family

The version of management is that  SEBI order is:

• ex-parte
• that is it is on the application of one party alone
• and is temporary.

Acting on a reference from the banking regulator Reserve Bank of India (RBI), Sebi conducted an investigation into the shareholding patterns in BoR since 2007. It was found that the entities which were banned were acting in connivance with the Tayals to corner BoR shares. This, in turn, helped the Tayals to disclose a shareholding pattern that conformed to the RBI rules relating to promoters’ holding in banks. However, the same shareholding pattern did not adhere to RBI’s main idea of separation of control and management.

Source: http://timesofindia.indiatimes.com/biz/india-business/Bank-of-Rajasthan-promoters-banned/articleshow/5660941.cms

Meanwhile The promoter of Bank of Rajasthan Ltd (BoR), P.K Tayal on Monday said the lender had approached the banking regulator to replace its chief executive and managing director G. Padmanabhan.

on 25th Feb The Reserve Bank of India (RBI) has tightened its grip on the working of Bank of Rajasthan (BoR) further by appointing two Deloitte entities to conduct special audit of the private sector bank’s books and accounts.