- SEBI found Rashmi Saluja guilty of insider trading in Religare Enterprises shares
- Saluja must disgorge Rs 1.99 crore and pay Rs 40 lakh penalty for UPSI violation
- She sold 12.9 lakh shares before Burman family's open offer announcement in Sept 2023
The Securities and Exchange Board of India (SEBI) has found Rashmi Saluja guilty of insider trading in shares of Religare Enterprises and directed her to disgorge unlawful gains of Rs 1.99 crore, according to an order issued by the market regulator.
SEBI also imposed a monetary penalty of Rs 40 lakh on Saluja, alleging that she sold shares of Religare Enterprises while in possession of unpublished price-sensitive information (UPSI) related to the Burman family's open offer announcement in September 2023.
According to SEBI, Saluja sold nearly 12.9 lakh shares of Religare Enterprises on Sept. 21 and 22, 2023, ahead of the public announcement of the open offer on Sept. 25. The regulator said the trades enabled her to avoid losses of nearly Rs 2 crore after the company's shares declined following the announcement.
The order stated that the Burman Group had informed Saluja about the proposed open offer before it became public. SEBI cited WhatsApp conversations, meetings and hotel records as part of the evidence relied upon during the investigation.
“The noticee traded in the shares of REL while in possession of UPSI and thereby violated insider trading norms,” SEBI said in its order.
The case stems from a complaint filed in November 2023 by four investment firms linked to the Burman family, which alleged that Saluja sold shares worth Rs 34.71 crore shortly after a Sept. 20 meeting with a Burman family representative where the open offer plan was discussed.
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SEBI initiated proceedings under Section 11 of the SEBI Act, 1992, which empowers the regulator to act against violations of securities market regulations, including insider trading.
In a separate allegation made in May 2024, the Burman family accused Saluja of selling an additional 27.1 lakh shares worth Rs 43 crore between March 26 and 28, 2024, while allegedly in possession of undisclosed price-sensitive information.
The latest SEBI order comes days after the Enforcement Directorate conducted searches at multiple premises linked to senior executives of Religare Enterprises, including Saluja, as part of an ongoing probe involving former promoters and entities linked to the Burman Group acquisition battle.
Religare Enterprises had earlier stated that no incriminating documents were recovered during the searches. However, the ED froze employee stock option plan (ESOP) shares of Care Health Insurance held by Saluja and other executives. The company also said the ESOP allotments issued to Saluja remain under review before the Securities Appellate Tribunal.
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