Now Reading: RBI rejects Religare demerger despite stock exchange nod
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RBI rejects Religare demerger despite stock exchange nod
The Reserve Bank of India has rejected the proposed demerger of Religare Enterprises and its subsidiary Religare Finvest into two independent listed entities. The Burman family-backed firm had sought to transfer its…
The Story in Brief
The Reserve Bank of India has rejected the proposed demerger of Religare Enterprises and its subsidiary Religare Finvest into two independent listed entities. The Burman family-backed firm had sought to transfer its lending, broking, and investment businesses to Religare Finvest while retaining its stake in Care Health Insurance. Stock exchanges NSE and BSE had previously issued no-objection certificates for the plan.
Religare said it received a letter from the RBI on August 6 conveying that the application was not acceded to. The company stated that it will engage further with the regulator for clarifications. Separately, the Securities and Exchange Board of India has closed proceedings against Religare and former executives without penalty.
The Indian Opinion
The RBI's rejection of a demerger that had already cleared stock exchange scrutiny shows the central bank is not a rubber stamp. Some narratives paint the Burman family's takeover as a clean break from past troubles. The real test now is whether the regulator's concerns get explained and addressed, or if this becomes another long loop of ambiguity. What specifically in the application fell short of RBI's norms?
Sources (2): economictimes.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
