Sebi bars Singh brothers, former promoters of Religare Enterprise from markets

Sebi has barred Malvinder and Shivinder Singh, former promoters of Religare Enterprises (REL) from the securities market for three years for alleged diversion of funds. Sebi, while imposing a penalty of Rs 10 crore each on the brothers, also restrained them from being a director or key managerial personnel in any listed firm for three years. Sebi has also barred eight other entities from the securities market for two years. These include RHC Holding, A-1 Book Company, Religare Corporate Services, Malav Holdings, Shivi Holdings, ANR Securities, Sunil Godhwani and Anil Saxena. These entities have also been fined Rs 5 crore each.

The Sebi investigation was for the period April 1,2011 to March 31,2018. The majority shareholders of REL during the investigation period were RHC Holdings and RHC Finance.

These RHC group companies were in turn entirely held by Shivinder Singh and Malvinder through Shivi Holdings and Malav Holdings. Religare Finvest (RFL) was a material subsidiary of REL during the probe period. Sebi said RFL had granted unsecured loans to a number of entities under its corporate loan book.