Mumbai: India’s two major stock exchanges issued warning letters to Religare Enterprises (REL) concerning delayed disclosures regarding the central bank’s rejection of Rakesh Asthana’s appointment as an Additional Director on the company’s board. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) said two separate letters to REL.
“Non-compliance on your part is viewed seriously. You are hereby warned and advised to be careful in future, exercise due caution and initiate corrective steps to avoid recurrence of such lapses so as to ensure due compliance with the applicable provisions of SEBI (LODR) Regulations, 2015 and SEBI Circulars. Any aberration in future will be viewed seriously and appropriate action would be initiated,” the National Stock Exchange said in its letter to the company.
This comes REL delayed the disclosure on RBI’s refusal, dated May 15, 2024 by more than four months, disclosing it to the exchanges on October 24. As per the exchanges, this disclosure was made only after their intervention, beyond the prescribed timelines. REL said in its filing that the stock exchanges viewed the non-compliance seriously, warning and advising the company to be careful in the future. “As per the Order, REL is found to be in violation of the provisions of SEBI (LODR) Regulations, 2015 and SEBI Circulars,” the company said in its exchange filing.
As per REL, the stock exchanges have also directed it to exercise due caution and initiate corrective steps to avoid recurrence of such lapses to ensure compliance with the applicable provisions of SEBI LODR Regulations and SEBI Circulars. Both exchanges have also clarified that any future violations will be viewed seriously, and appropriate actions will be initiated in case of any non-compliance.
Additionally, the stock exchanges have directed REL to present the warning letters and the corrective actions taken to its Board of Directors. “The company is required to disseminate a copy of this warning letter on the stock exchanges where they are listed. Additionally, the company is advised to place before their Board of Directors this warning letter and the corrective measures taken by the company to avoid recurrence of such lapses in future,” the NSE told REL.
