Sebi Asks Religare To Get Approvals In Burman Deal; Shares Up 4%
Religare need for an open offer allows the Burmans to purchase additional shares from public shareholders
Religares stocks rose over 4 per cent in theThursday trading session after the market regulator, Securities and Exchange Board of India (Sebi) asked the Burman family to submit an application for permission to purchase further shares in the financial services company.
Religare stocks traded at Rs 234 with 4.41 per cent gain in the morning session on the National Stock Exchange (NSE).
The Religare need for an open offer was activated in September last year by the Burmans, who created and currently control the consumer goods giant Dabur India. This move allowed the Burmans to purchase additional shares from public shareholders.
However, Religare attempted to thwart the transaction, claiming that the unsealed proposal was ‘filled with anomalies and legal infractions and raised significant questions about the appropriateness and suitability of the purchasers.’
The Burman family petitioned before Sebi because of Religare's lack of cooperation. The Burmans sought to purchase an additional 26 per cent of Religare in order to increase its position in the quickly expanding financial services industry.
In an interim directive dated 19 June, Sebi requested that Religare provide an assurance that it will submit an application by 12 July to regulatory bodies, such as the central bank, seeking approval for the open offer.
