SAT orders Religare to apply with Sebi for open offer by Burmans
Securities Appellate Tribunal (SAT) on Wednesday directed Religare Enterprises (REL) to apply with the Securities and Exchange Board of India (Sebi) for the open offer made by the Burman family to raise its stake in the company. The tribunal, which hears appeals against the Sebi orders, however, stayed the show cause notice issued by the capital markets regulator to the financial services company and its board.
In June, Sebi had asked Religare to apply with it the open offer proposal by the Burman family to purchase an additional 26% stake from the firm's public shareholders. Religare approached SAT against the Sebi directive.
SAT has asked Religare to make the application with Sebi by July 22.
In response to the SAT order, a Religare spokesperson said, «REL shall make necessary applications to regulators without prejudice to prosecuting the appeal. Sebi has been granted one month to file its reply and a rejoinder be filed within the next one month. The matter is now fixed for further hearing on August 26, 2024.»
The Burmans did not respond to an email query until press time.
The Burman family, the largest shareholder of Religare holding around 25% stake in the company, had announced the open offer in September 2023 to increase the family's stake and take control of the firm. But Religare did not file the open offer application with Sebi citing a low open offer price and 'fit and proper' allegations against the Burmans.
In its show cause notice, Sebi had asked REL chairperson Rashmi Saluja and the management
