Religare Finvest case: Sebi orders attachment of bank, demat accounts of Shivi Holdings

Religare Finvest case: Sebi orders attachment of bank, demat accounts of Shivi Holdings
Representational imagePTI
Sebi on Wednesday ordered the attachment of bank and demat accounts of Shivi Holdings to recover Rs 5.35 crore in a matter related to fund diversion case of Religare Finvest. Religare Finvest Ltd (RFL) is a subsidiary of Religare Enterprises Ltd (REL).

The recovery proceedings against Shivi Holdings have been initiated to recover Rs 5.35 crore, which includes interests, all costs, charges and expenses etc, the Securities and Exchange Board of India (Sebi) said in the attachment order.

In its notice, Sebi asked all the banks, depositories and mutual funds not to allow any debit from the accounts of Shivi Holdings. However, credits have been allowed.

Further, the market watchdog has directed all banks to attach all accounts, including lockers, of all the defaulter.

Last month, Sebi had ordered banks and depositories to attach bank and demat accounts of erstwhile promoters of Religare Enterprises -- Shivinder Mohan Singh and four other entities to recover Rs 32.10 crore in the same matter.


The entities are -- Malav Holdings, RHC Holding, ANR Securities and Religare Corporate Services (now known as Finserve Shared Services). They were also the former promoters of REL.

The case relates to the diversion of funds to the tune of Rs 2,473.66 crore of Religare Finvest Ltd (RFL), a subsidiary of Religare Enterprises Ltd (REL), during FY 2014-15 till FY 2017-18, in the garb of loans through layers of entities for the ultimate benefits of entities controlled by the erstwhile promoters -- Singh brothers.

Sebi noted that these diverted funds never came back to RFL.

The diversion of funds was never disclosed to the shareholders of REL, which misled them to remain invested in the shares of REL or deal in the securities of REL. Thus, the apparent diversion of funds led to indirect manipulation of the price of shares of REL, Sebi said in its order.

By indulging in such acts, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.


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