Merchant Bankers Must Maintain Client 'Lakshman Rekha': SAT

Business Standard · business

Securities Appellate Tribunal (SAT) chief Justice PS Dinesh Kumar urged merchant bankers to maintain a clear 'Lakshman Rekha' with clients, ensuring advice and due diligence stay within legal bounds. He stressed the importance of evaluating company fundamentals and projections realistically before guiding clients. Kumar highlighted that merchant bankers are crucial intermediaries between companies and investors, and their ethical conduct is vital for market integrity.