RBI rejects Religare demerger plan despite stock exchange nod

Kolkata: The Reserve Bank of India has rejected the proposed demerger of Religare Enterprises and its subsidiary Religare Finvest into two independent listed entities despite stock exchanges signalling their no-objection to the plan.

The Burman family-backed Religare said it would engage further with the regulator to provide clarifications on the matter.

"The company has received a letter dated August 6, 2026, from the RBI, conveying that the application has been examined and that the request has not been acceded to," it said in a stock exchange notice Friday.


Also Read: Burman-backed Religare Enterprises announces demerger to unlock shareholder value

Under the proposed scheme of arrangement, Religare Enterprises Ltd (REL) wanted to retain its stake in Care Health Insurance Ltd, which would continue as an insurance-focused entity. It had proposed its financial services business comprising lending activities, broking activities, investment activities and ancillary and support services to be transferred to Religare Finvest Ltd (RFL) on a going concern basis.

The group's main businesses include lending under Religare Finvest, offering health insurance under Care Health Insurance and retail broking under Religare Broking.

"REL and RFL shall engage with the regulator and provide further clarifications, as may be required in this regard," the company said in the regulatory filing.

Also Read: SEBI disposes of case against Religare Enterprises, Saluja, other persons

The share of REL plunged nearly 9.5% Friday to Rs 232.55 on BSE. RFL is its unlisted subsidiary.

The proposed demerger was the first major restructuring exercise planned by the company since the Burmans finally took over REL in February 2025 following a prolonged open offer and corporate battle.

Incidentally, the Securities & Exchange Board of India last month closed proceedings against REL, its former executive chairperson Rashmi Saluja, and five directors over their alleged failure to cooperate with the Burman Group’s mandatory open offer after it acquired REL. The Burman family now owns 30.6% in the company.

ends