SAT stays Sebi's show cause notice against Religare Enterprises; key details
The Burmans had announced the open offer in September 2023 to increase its stake. SAT has now asked the company to file the application by July 22.
- Jul 10, 2024,
- Updated Jul 11, 2024 1:03 PM IST
The Securities Appellate Tribunal (SAT) on Wednesday stayed the show cause notice issued to Religare Enterprises and its directors by the market regulator Sebi on June 19, sources told BT TV. SAT also issued a notice to Sebi in an appeal filed by Religare Enterprises Ltd and its directors, as per a source, granting the market regulator one-month period to file its reply. A rejoinder is to be filed within the next one month. The matter is now fixed for further hearing on August 26, 2024.
To recall, the Burman group had accused Religare board and its Chairperson Rashmi Saluja of obstructing the open offer. Religare Enterprises argued that the Burman family was not 'fit and proper' to undertake the acquisition.
Sebi had asked Religare to apply with it the open offer proposal by the Burman family that wants an additional 26 per cent stake from the company's public shareholders. The Burmans had announced the open offer in September 2023 to increase its stake.
Sebi vide emails dated November 8, 2023, March 1, and April 30, accorded opportunities to REL to provide the documents in support of its allegations. The markets regulator on June 19 in its interim order cum show cause notice asked Religare to seek statutory approvals from regulatory authorities for an open offer by Dabur India promoter Burman family. SAT has now asked the company to file the application by July 22.
As per the source, SAT asked Religare Enterprises to make necessary applications to regulators without prejudice for prosecuting the appeal. "Sebi has been granted one month to file its reply and a rejoinder be filed within next one month. The matter is now fixed for further hearing on August 26," he said.
Earlier today, a NDTV report suggested that SAT has instructed Religare Enterprises Ltd to comply with the Sebi directive, paving the way for the Burman family to increase their stake in the financial services company. Shares of Religare Enterprises slipped 2.14 per cent to settle at Rs 238.25. At this price, the stock is up 9.57 per cent year-to-date.
The Securities Appellate Tribunal (SAT) on Wednesday stayed the show cause notice issued to Religare Enterprises and its directors by the market regulator Sebi on June 19, sources told BT TV. SAT also issued a notice to Sebi in an appeal filed by Religare Enterprises Ltd and its directors, as per a source, granting the market regulator one-month period to file its reply. A rejoinder is to be filed within the next one month. The matter is now fixed for further hearing on August 26, 2024.
To recall, the Burman group had accused Religare board and its Chairperson Rashmi Saluja of obstructing the open offer. Religare Enterprises argued that the Burman family was not 'fit and proper' to undertake the acquisition.
Sebi had asked Religare to apply with it the open offer proposal by the Burman family that wants an additional 26 per cent stake from the company's public shareholders. The Burmans had announced the open offer in September 2023 to increase its stake.
Sebi vide emails dated November 8, 2023, March 1, and April 30, accorded opportunities to REL to provide the documents in support of its allegations. The markets regulator on June 19 in its interim order cum show cause notice asked Religare to seek statutory approvals from regulatory authorities for an open offer by Dabur India promoter Burman family. SAT has now asked the company to file the application by July 22.
As per the source, SAT asked Religare Enterprises to make necessary applications to regulators without prejudice for prosecuting the appeal. "Sebi has been granted one month to file its reply and a rejoinder be filed within next one month. The matter is now fixed for further hearing on August 26," he said.
Earlier today, a NDTV report suggested that SAT has instructed Religare Enterprises Ltd to comply with the Sebi directive, paving the way for the Burman family to increase their stake in the financial services company. Shares of Religare Enterprises slipped 2.14 per cent to settle at Rs 238.25. At this price, the stock is up 9.57 per cent year-to-date.