After the Competition Commission of India sought details from Religare about the role of the Burman family, promoters of Dabur, in the company and their plans, it is now the Securities and Exchange Board of India (Sebi) that is inquiring into the open offer made by the family. Burmans are the largest shareholders of the financial services company and are currently in loggerheads with the Religare management.
According to a report by Economic Times, Sebi asked Religare for complete details and the sequence of events starting from the time of the first discussion regarding the open offer transaction till the stock exchange announcement on September 25. It has also sought documentary evidence, as well as personal and official details of the individuals involved in the discussions.
The report stated that the market regulator also asked for details of Burmans’ shareholding in Religare from January 1, 2018 till date.
The Burmans had picked their first stake in the company in 2018 of 10 per cent, which was eventually increased to 14 per cent and later to 22 per cent, before they announced their open offer for additional 26 per cent stake and a proposal to acquire 5 per cent from secondary market.
Also read: CCI seeks details from Religare Enterprises on Burmans' role, merger plans: Report
A Burman family spokesperson, however, said there was no cause for alarm in Sebi’s investigation. "We are confident Sebi will examine all aspects of the open offer, including the deliberate delays caused by the company in seeking regulatory approvals, and securities trading by senior executives," the spokesperson told the daily, adding that several of the aspects looked at were already raised in their communications with the regulator. The spokesperson said that they “respect and need their oversight”.
A Religare spokesperson said that the company is in receipt of Sebi’s questions and will respond accordingly.
Sebi also asked Religare to provide information of all the board meetings along with the agenda and minutes. It also sought information of all trading activities by Religare’s employees, directors and others in stock, including employee stock options.
The Burmans have accused Religare Enterprises Chairperson Rashmi Saluja of selling a portion of her personal holdings in the firm soon after a meeting with a representative of the Burmans, and have sought a probe against the allegations. On the other hand, REL independent directors have accused the Burmans of fraud and material breach of regulatory obligations.
Also read: Dabur’s Burmans now seek probe into Religare Chairperson Rashmi Saluja’s share sale
Also read: Religare independent directors move against Burmans’ takeover plan; write to Sebi, RBI, IRDAI