Dabur’s Burmans make fresh complaints of insider trading against Religare Enterprises’ Rashmi Saluja
The Burman family of Dabur has made fresh complaints against Religare Enterprises’ Chairperson Rashmi Saluja about insider trading violations.
According to a report in The Economic Times, months after the family accused Saluja of insider trading violations in September 2023, ahead of the open offer announcement, the Burman family has complained to markets regulator Securities and Exchange Board of India that Saluja possessed crucial price-sensitive information, not disclosed to the stock exchanges, before she sold 2.71 million shares worth Rs 43 crore between March 26 and 28.
In a letter submitted, four entities owned by the Burmans – that own stakes in the financial services firm – said that the transaction is in breach of SEBI’s Prohibition of Insider Trading (PIT) regulations.
The fresh complaint comes as both sides are locked in a dispute, with each side accusing the other of violating rules on corporate governance or insider trading.
According to the Burmans’ latest complaint to SEBI, Saluja was aware that the board of the financial services firm notified them that it had noticed grave concerns against them that cast a serious doubt on whether the incoming acquirers (Burmans) would meet the fit and proper criteria, the report stated. Such information, if made public, would depress Religare’s share price.
The Burmans said, Saluja was aware of such material information but chose not to disclose it in the public and proceeded to trade. Saluja capitalised on the opportunity to make undue profits from the trade, said the letter.
The Burmans have urged SEBI to conduct an investigation into Saluja’s trades and ban her from the securities market.
BURMANS VS SALUJA
Last year, the Burmans complained to the SEBI accusing Saluja of selling 1.29 million shares, after a representative of the family informed her of their intention to make an open offer to acquire control of the company.
Independent directors of Religare wrote a letter to SEBI, RBI, and insurance watchdog levelling allegations of fraud and other breaches against the Burmans.
