Rashmi Saluja's acquisition in REL via ESOPs requires investigation: Burman family
Burman family spokesperson on Wednesday issued a statement regarding the allotment of approximately 2.14 crore shares, constituting ~8% of Religare Finvest Limited (RFL), to Rashmi Saluja through Employee Stock Ownership Plans (ESOPs).
The largest shareholder of Religare Enterprises Limited (REL) has said that the matter requires investigation in terms of compliance with SEBI Takeover Regulations.
On Wednesday, ET had reported that a day after the Burman family announced an open offer to buy more shares to take control of the financial services conglomerate, Rashmi Saluja, executive chairperson of the company, acquired around 8% stake in its wholly-owned shadow bank Religare Finvest Limited (RFL), through an Employees Stock Option Plan (Esop) award.
«It is unfortunate that a solitary executive has cornered significant quantum of remuneration through ESOPs at Religare Enterprises Limited (REL), Care Health Insurance Limited, and RFL, all without approval and requisite disclosure to REL shareholders,» the spokesperson said.
The Burman family also said that this raises question mark on the management and the independence of
the independent directors and their complicity in such unjustified dole outs.
«REL board should answer the shareholders whether there exist more instances of ESOP issuances to entities, and potential conflicts of interest,» they added.
Further, the Burman family's spokesperson also remarked that these actions have eroded trust and confidence in the REL board, necessitating urgent need to restore credibility.
The award in the unlisted subsidiary ascribed its value in a band of Rs 150-260 crore. Previously, proxy advisory firm InGovern had estimated the Esops awarded to Saluja in Religare
