SEBI orders final action on Religare chair's suspected insider trading

This is a final order by SEBI regarding suspected insider trading by Dr. Rashmi Saluja, the Executive Chairperson of Religare Enterprises Ltd. (REL), who allegedly sold shares to avoid losses before the public announcement of an open offer by the Burman Group.

Who it concerns: Dr. Rashmi Saluja (Noticee), Religare Enterprises Ltd. (REL), Burman Group (M.B. Finmart Private Limited, Puran Associates Private Limited, VIC Enterprises Private Limited, Milky Investment & Trading Company), Dr. A C Burman, Mr. Arjun Lamba.

What SEBI found or ordered

• SEBI investigated whether the Noticee traded in REL shares while in possession of Unpublished Price Sensitive Information (UPSI) regarding an impending open offer.
• The UPSI period was defined as September 8, 2023, to September 25, 2023 (date of public announcement).
• SEBI alleged the Noticee sold shares on September 21 and 22, 2023, to avoid a loss of approximately INR 1.99 crore (INR 1,99,08,933.85).
• The order cites violations of the SEBI Act, 1992, and the SEBI (Prohibition of Insider Trading) Regulations, 2015.
• The order includes a section for the computation of wrongful gain/loss avoided and a final order section, though the specific penalty amounts or directions are not detailed in the provided text excerpt.

Also in the document

• The alleged insider trading involved the Executive Chairperson of the target company, REL.
• The open offer was for the acquisition of 90,042,541 shares (26.00% shareholding) at INR 235 per share.
• SEBI noted that the Noticee had personal meetings with Dr. A C Burman and Mr. Arjun Lamba on August 25, 2023, and September 20, 2023, shortly before the public announcement.
• The investigation period covered June 7, 2023, to December 25, 2023.