Sebi is probing the Burman family’s open offer to Religare. In their conflict with Religare management, the family has accused Religare of selling part of their interests and fraud. Sebi has sought full information of the open offer, including discussion dates and the Burmans’ holdings.
After the Competition Commission of India asked Religare about the Burman family, Dabur’s promoters, and their aspirations, Sebi is investigating the family’s open offer. The major owners of Religare, the Burmans, are at odds with management.
According to Economic Times, Sebi asked Religare for full data and the sequence of events from the initial open offer transaction conversation to the stock market statement on September 25. It has also requested documentation proof and personal and official data of the discussants.
The article said the market authority requested Burmans’ Religare holdings from January 1, 2018 to the present.
The Burmans bought their initial 10% share in the firm in 2018, then 14% and 22% before announcing their open offer for 26% and a secondary market offer for 5%.
Report: CCI asks Religare Enterprises about Burmans’ role, merger plans
Sebi’s inquiry showed no basis for concern, according to a Burman family spokeswoman. We are confident Sebi will examine all aspects of the open offer, including the company’s deliberate delays in seeking regulatory approvals and senior executives’ securities trading,” the spokesperson told the daily. Several of the aspects examined were already raised in their communications with the regulator. The representative stated that they “respect and need their oversight”.
Religare will answer to Sebi’s queries, according to a spokeswoman.
Sebi also requested agendas and minutes from Religare for all board meetings. It also requested information on Religare’s employees, directors, and others’ stock transactions, including stock options.
Religare Enterprises Chairperson Rashmi Saluja has been accused by the Burmans of selling a portion of her personal assets in the business after meeting with a representative. They have requested an inquiry. However, REL independent directors have charged the Burmans of fraud and significant regulatory violations.
Conclusion
Sebi is probing the Burman family’s open offer to Religare. The management of Religare is in conflict with the Burmans, Religare’s main shareholders. Sebi wants full details of the open offer transaction, including the sequence of events and the parties’ personal and official information. The family wants Religare Enterprises Chair Rashmi Saluja investigated for selling part of her personal ownership in the business. Religare independent directors have been accused of fraud and significant regulatory violations by the Burmans.
