Categories: Business

Burmans request for investigation into allotment of 8% RFL stake to Saluja via ESOPs

The Burman Family, holding a 21% stake in Religare Enterprises Ltd. (REL), has urged an investigation into the allocation of around 2.14 crore shares (8% of its subsidiary Religare Finvest Ltd. – RFL) to Rashmi Saluja, REL’s chairperson, through Employee Stock Ownership Plans (ESOPs).

A Burman Family spokesperson stated, “It requires investigation in terms of compliance with SEBI Takeover Regulations.”

Expressing concern over significant remuneration garnered by Saluja without requisite approval or disclosure to REL shareholders, the spokesperson questioned the management’s integrity and the independence of directors.

The spokesperson called for transparency, stating, “REL board should answer the shareholders whether there exist more instances of ESOP issuances to entities and potential conflicts of interest,” and emphasized the need to restore credibility given the erosion of trust.

“It is unfortunate that a solitary executive has cornered significant quantum of remuneration through ESOPs at REL, Care Health Insurance Ltd., and RFL, all without approval and requisite disclosure to REL shareholders,” the spokesperson said.

“This raises question mark on the management and the independence of the independent directors and their complicity in such unjustified dole outs. REL board should answer the shareholders whether there exist more instances of ESOP issuances to entities, and potential conflicts of interest,” the spokesperson added.

“These actions have eroded trust and confidence in the REL board, necessitating urgent need to restore credibility,” the spokesperson further said.

Nisha Srivastava

Nisha Srivastava is an influential blog writer and content editor associated with The Daily Guardian, with over 10 years of experience in writing.

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