Independent directors of Religare rebel against Burmans' takeover plan
Religare Enterprises Ltd (REL) have written to regulators such as RBI, Sebi and the insurance watchdog, levelling allegations of fraud and other breaches against the Burmans, which had made an open offer in September to acquire firm's control.
That sets the stage for a potentially long-drawn takeover battle over a business that holds coveted licences to lend, sell insurance and operate as an intermediary in the stock market.
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Offering CollegeCourseWebsiteIIM LucknowIIML Chief Marketing Officer ProgrammeVisitIIM LucknowIIML Chief Operations Officer ProgrammeVisitNorthwestern UniversityKellogg Marketing Leadership Development ProgramVisitThe Burmans rejected the accusations.
«We are surprised and disappointed at these allegations,» a spokesperson for the Burman family said in a statement. «These allegations are false, frivolous and defamatory.» The accusations are meant to deflect attention from trades made by an unnamed REL executive, the person said.
The Securities and Exchange Board of India (Sebi) has asked REL for evidence and documents to back the allegations, made in an October 18 letter. Sebi has also sought the response of JM Financial, manager of the open offer, on the accusations made in the letter.
JM Financial has also denied the allegations of collusion and impropriety.
The billionaire Burman family, promoters of FMCG major Dabur, had through various entities accumulated a 21.5% stake in REL by August. In September, it bought another 5.27% stake, triggering a mandatory open offer to buy an extra 26% stake from the public. This requires Sebi approval.
The independent directors have in their letter sought to make the issue a broad-based one,
