SEBI Fines Rashmi Saluja ₹40 Lakh, Orders ₹2 Crore Disgorgement In Religare Insider Trading Case

New Delhi, May 13: Markets regulator Sebi on Wednesday imposed a penalty of Rs 40 lakh on Rashmi Saluja, former executive chairperson of Religare Enterprises, and ordered her to disgorge wrongful gains in the form of losses averted of around Rs 2 crore by selling the shares of the financial firm on the basis of unpublished price-sensitive information.

The case pertains to Saluja's sale of shares while in possession of unpublished price-sensitive information (UPSI) regarding the Burman Group's impending open offer to REL's public shareholders.

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Sebi cites insider trading violation

In its final order, Sebi noted that Saluja, based on information regarding the Burman Group's impending open offer in the REL scrip, sold REL shares and avoided a loss of Rs 1.99 crore. She engaged in insider trading regarding the sale of shares in the scrip of REL after September 20, 2023, but before September 25, 2023 — the date on which the UPSI concerning the open offer was made public.

"Noticee (Saluja) was in possession of the UPSI with respect to the impending open offer by the Burman Group in the scrip of REL and the act of sale of shares of REL by the noticee on September 21 and 22, 2023, was based on the aforesaid UPSI and carried out with the intention to avoid losses," Sebi said in its 87-page order.

"The noticee avoided a loss of Rs 1.99 crore approx. by selling the shares of REL prior to disclosure of UPSI on stock exchange platform," it added.

Accordingly, Sebi has directed Saluja to "disgorge the amount of wrongful gain in the form of losses averted of Rs 1.99 crore ...along with simple interest @ 12 per cent per annum from the date of sell till the date of deposit". Also, the regulator levied a penalty of Rs 40 lakh on her.

Probe followed complaint by Burman Group

The order came after Sebi received a complaint in November 2023 from the Burman Group, requesting an examination into trades done by Saluja in the scrip of REL.

Following this, the regulator investigated whether the noticee traded in REL's scrip while in possession of or having access to the UPSI regarding the Burman Group's impending open offer to REL's public shareholders on September 25, 2023, and whether that trading violated PIT (Prohibition of Insider Trading) norms. The investigation period was from June 7, 2023, to December 25, 2023.

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On September 25, 2023, before the opening of markets, JM Financial (Manager to the Offer) submitted to stock exchanges a copy of the public announcement for the attention of the public shareholders of REL in relation to an open offer to be made by the Burman Group for the acquisition of 90,042,541 shares at Rs 235 per share, representing 26 per cent shareholding of REL.

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