SAT Warns Merchant Bankers Against Crossing Ethical Boundaries
What Happened
Justice PS Dinesh Kumar, presiding officer of the Securities Appellate Tribunal (SAT), said merchant bankers must maintain a clear "Lakshman Rekha" with clients, ensuring advice, due diligence and guidance remain within the law. He stressed that bankers should independently assess a company's financials, fundamentals and projections before backing fundraising plans.
Key Takeaways
The SAT chief underscored the importance of ethics, due diligence and professional independence, reminding merchant bankers that investors and regulators rely on their scrutiny to protect market integrity.