Religare asked to seek regulatory nod for top investor raising stake

Securities and Exchanges Board of India (SEBI) markets regulator has asked Religare Enterprises to apply for approvals to let billionaire Burman family buy more shares in financial services company, dealing a blow to company's attempt to block move.

Burmans, who founded and control consumer goods conglomerate Dabur India, raised its stake in Religare to nearly 25 per cent in September last year, triggering so-called open offer requirement that allows m to buy more shares from public shareholders.

However, Religare h sought to block deal saying open offer was "riddled with irregularities and statutory violations and cast serious doubts on fit and proper status of acquirers."

Burmans -- who want to buy around 26 per cent more of Religare to bolster its presence in rapidly growing financial services sector -- approached Securities and Exchange Board of India (SEBI) due to company's lack of cooperation.

SEBI, in an interim order dated June 19, asked Religare to furnish an undertaking that it will apply by July 12 to regulatory authorities, including central bank, for approvals for open offer.

It also asked Religare to form a committee of independent directors, if not alrey done, but did not give a reason for directive.

"As per SEBI's visory company will apply for fit and proper status of acquirers for open offer to concerned regulators including RBI," a spokesperson for Religare said in a statement.

Burman family did not immediately respond to Reuters' emails seeking comment.

Shares of Religare, which have fallen about 13 per cent since Burman's announcing open offer last September, were up 4.5 per cent at Rs 234.70.