Now Reading: RBI rejects Religare demerger despite stock exchange approval
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RBI rejects Religare demerger despite stock exchange approval
The Reserve Bank of India has rejected Religare Enterprises’ proposed demerger of its financial services business into subsidiary Religare Finvest, despite stock exchanges issuing no-objection approvals. Religare said it received the RBI’s…
The Story in Brief
The Reserve Bank of India has rejected Religare Enterprises’ proposed demerger of its financial services business into subsidiary Religare Finvest, despite stock exchanges issuing no-objection approvals. Religare said it received the RBI’s decision in a letter dated August 6 and would seek further clarification from the regulator.
Under the plan, Religare Enterprises would retain its stake in Care Health Insurance, while lending, broking, investment and support services would move to Religare Finvest as a going concern. The restructuring was the first major one since the Burman family took control in February 2025. Separately, SEBI has closed proceedings against former chairperson Rashmi Saluja and five directors over alleged non-cooperation with the Burman Group’s open offer.
The Indian Opinion
The easy story is that the RBI has blocked value creation, or that the stock exchanges’ approval made the plan nearly final. Neither follows. The proposal still needed the central bank’s consent, and Religare’s decision to seek clarifications leaves the process open. The practical test is whether the company can answer the RBI’s concerns without changing the proposed transfer of lending, broking and investment businesses. Until then, shareholder value claims remain proposals, not results.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
