Religare Enterprises has received warning letters from stock exchanges for delaying the disclosure of Reserve Bank of India’s (RBI) refusal for appointment of Rakesh Asthaana as additional director. The company had received a letter dated May 15 from the central bank, advising its refusal for appointment of Rakesh Asthaana as additional director on the board, but the company disclosed it only on October 24 after the intervention of stock exchanges.
The NSE and BSE observed that delay in the disclosure was “beyond the timeline prescribed in the aforesaid provisions”. Warning letters to the company read: “The aforesaid non-compliance on your part is viewed seriously. You are hereby warned and advised to be careful in future, exercise due caution and initiate corrective steps to avoid recurrence of such lapses.”
The exchanges warned the company that any aberrations in the future will be viewed seriously and attract appropriate action. In November 2023, the board of Religare Enterprises had appointed Asthaana, former police commissioner of Delhi and CBI special director, as an additional director (to be designated as a whole-time director) subject to shareholder and regulatory approvals.
However, the Burman family opposed Asthaana’s appointment and wrote to the Securities and Exchange Board of India (Sebi) that mandatory shareholder approval was not taken within three months of the appointment. Burman family holds around 25% stake in Religare Enterprises. Religare’s management, led by its chairperson Rashmi Saluja, and the Burman family-controlled firms, are locked in a battle to control the financial services company.
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