Religare Enterprise jumps on resolving legacy issues with Sebi

25 Apr 2022 , 12:34 PM

The Securities and Exchange Board of India (Sebi) had brought to the notice of REL that certain compliance requirements were overlooked/not complied with during the period between 1 April 2011 to 31 March 2018.

In order to cure another legacy issue and keep REL growing as per its plans, the company submitted an application for settlement under the SEBI (Settlement Proceedings) Regulations, 2018 without admission or denial of Sebis findings.

REL noted that during the aforesaid period, the control and management of the company rested with erstwhile promoters Malvinder Mohan Singh and Shivinder Mohan Singh and certain individuals who were accustomed to act on their instructions. None of these are now associated with REL.

The erstwhile promoters have already been reclassified as public shareholders by the exchanges and REL is a professional company without any promoter, REL said in a statement.

REL said that its application along with the settlement terms proposed by the company were examined by Sebi. The regulator after having considered the facts and circumstances of the case, approved that the specified proceedings may be settled upon payment of Rs 5,41,80,000.

The company added that it complied with the direction immediately and accordingly deposited the suggested amount with the regulator.

RELs executive chairperson Dr. Rashmi Saluja said: This is a reaffirmation of the consistent efforts made by the REL management to adhere to the highest levels of corporate governance. The current management is working tirelessly to restore REL to its rightful position as a leading player in the BFSI domain and closing these legacy issues remains a top priority as we embark on a new journey with new businesses and fresh funding on the horizon.

REL, a core investment company (CIC) registered with Reserve Bank of India (RBI), is a diversified financial services company. It offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, affordable housing finance, health insurance and retail broking.

On a consolidated basis, REL reported net loss of Rs 249.64 crore in Q3 December 2021, higher than net loss of Rs 113.45 crore in Q3 December 2020. Total income declined 42.04% to Rs 881.26 crore in Q3 December 2021 over Q3 December 2020.

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