Stock market head and regulator, SEBI has banned all 100 entities of Bank of Rajasthan (BoR) and also many members of Tayal Family who are the promoters of the bank from any kind of activity in the stock market. Many entities which have been banned are listed companies either held directly by Tayal family or their associates.

As per a reference from the RBI, SEBI had conducted an investigation on the shareholding patterns in Bank of Rajasthan since 2007. It was found that the Tayal entities as well as those of their associates were acting to corner the bank's shares. As a result, the Tayals were able to show a shareholding pattern to RBI which abided by the rules set by the Central Bank.

The order under the signature of SEBI director K M Abraham, banned entities including Pravin K Tayal, Navin K Tayal, Sanjay K Tayal and Saurabh P Tayal, who are the main promoters of the bank. The listed entities which were banned from the market were Jaybharat Textiles, Eskay K'n'IT, KSL & Industries, Krishna Lifestyle Technologies and Ashahi Fibres.

The RBI had found during the annual inspection of BoR that the bank had made improper disclosure regarding the shareholding pattern of the promoter group. Following this RBI referred the matter to market watchdog SEBI. SEBI's investigation revealed that between June 2007 and December 2009, it was shown that the promoters' shareholding in the bank have declined from 44.2% to 28.6%. However, the true figures as of end-2009, say that the Tayals, along with their associates, actually controlled 55% in the bank.

RBI in its reference to SEBI had said, "It appeared that they had increased their stake in BoR simultaneously through surrogate acquisition." SEBI has proved the suspicion to be true.

RBI also said that it felt that there was inter firm fund transfer to the accounts of other corporate bodies who held a stake in BoR. It was also found that many of the associates mentioned had same contact details as that of the various Tayal Group of Companies and also that some of the directors were common in the said other corporate bodies and Tayal Group Companies."