Religare board initiates governance review

Religare Enterprises (REL) on Monday said it has commissioned a governance review of the company and subsidiaries, Religare Finvest and Religare Housing. It has also sought immediate funds from its promoters — the Burman family — to sustain operations.

“The objective is to review the past operating practices, suggest improvements around systems and controls for future implementation and to identify any potential instances of misconduct by certain current and/or ex-employees of the aforementioned companies,” the firm said in an exchange filing.

The company has engaged Trilegal, which would be assisted by Grant Thornton Bharat, for the review.

ALSO READBears turn their focus to real estate

The REL board also reviewed the fund flow position of the company and observed a cash flow gap over the next few months. “To address the funding requirements, the board has recommended a short-term inter-corporate loan (ICL) from the promoter group or its associate entities in the interim shall be best suited given the tight timeline for the requirement,” the notification said.

The board’s moves come less than a month after the Burmans were designated as promoters of the company on February 20.

After acquiring majority control, the company had said the Burman family will work with REL’s leadership and board to enforce its strategic direction and enhance long-term value creation. “We have always invested in businesses with strong fundamentals and high-growth potential, and we will apply the same disciplined approach to REL with the highest level of governance,” the group spokesperson had said.

ALSO READJefferies initiates coverage on Waaree Energies, Patanjali Food and Sai Life Sciences

The Burman family’s takeover bid went through several hurdles, with the matter going to regulators as well as courts. However, executive chairperson Rashmi Saluja had to exit as director in mid-February after 97% of shareholders voted against her reappointment as per ‘liable by rotation’. The Reserve Bank of India (RBI) also gave its nod.

At the same time, Digvijay (Danny) Gaekwad was unable to deposit `600 crore earnest money, as ordered by the Supreme Court.

Earlier, three proxy firms had warned against Saluja’s reappointment while flagging several factors, including her excessive remuneration, disproportionate grant of ESOPs, and ongoing legal challenges.

REL shares closed 2.99% down at `235.20 per share on the NSE on Monday.

 » Read More

Related Articles

March 2025 Tax Alert: Miss these deadlines and you could lose exemptions, face fines

March 31 is the last day of the financial year, which is considered a very important date for taxpayers and investors. If you have not yet made the necessary investments to save tax or some important financial work is pending, then it is very important to settle them this month. Whether it is taking advantage

Loan Against Mutual Funds: How it works & what you should know

Investing in mutual funds can significantly contribute to wealth accumulation over time. Interestingly, these investments can also serve as collateral for securing a loan. Lenders may consider your mutual fund holdings as a guarantee, allowing you to obtain loans at competitive interest rates. Prior to approving the loan, lenders will evaluate the value of your

Paytm Money receives SEBI nod to offer research services, shares surge

Shares of One 97 Communications Ltd, the parent company of Paytm, surged up to 7.54 per cent at 11:30 am on Tuesday to a trading price of Rs 740.75 after its subsidiary Paytm Money received green light from the Securities and Exchange Board of India (Sebi) to offer services as a research analyst. With this

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

March 2025 Tax Alert: Miss these deadlines and you could lose exemptions, face fines

March 31 is the last day of the financial year, which is considered a very important date for taxpayers and investors. If you have not yet made the necessary investments to save tax or some important financial work is pending, then it is very important to settle them this month. Whether it is taking advantage

Loan Against Mutual Funds: How it works & what you should know

Investing in mutual funds can significantly contribute to wealth accumulation over time. Interestingly, these investments can also serve as collateral for securing a loan. Lenders may consider your mutual fund holdings as a guarantee, allowing you to obtain loans at competitive interest rates. Prior to approving the loan, lenders will evaluate the value of your

Paytm Money receives SEBI nod to offer research services, shares surge

Shares of One 97 Communications Ltd, the parent company of Paytm, surged up to 7.54 per cent at 11:30 am on Tuesday to a trading price of Rs 740.75 after its subsidiary Paytm Money received green light from the Securities and Exchange Board of India (Sebi) to offer services as a research analyst. With this

Heatwave fuels growth for AC Industry- 3 key factors watch now

The heatwave may not be good news for you but the AC industry is rejoicing… It is expected to deliver robust volume-led growth in Q4FY25 on the back of early onset of the summer coupled with aggressive channel stocking.  The Indian Meteorological Department has predicted above-normal number of heatwave days in most parts of the

Bajaj Finserv slips 2%; Bajaj Group buys out 26% Allianz stake in insurance JV

Bajaj Finserv’s share price fell 1.8% to an intra-day low of Rs 1,837. The stock was the major loser in the Nifty 50. The fall in share price came after Bajaj Group signed a share purchase agreement with Allianz SE to buy out its stakes in the joint ventures.  The company will acquire a 26%