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What is the story about?
India’s market regulator has asked former Religare Enterprises executive chairperson Rashmi Saluja to disgorge ₹1.99 crore and imposed a ₹40 lakh penalty over alleged insider trading linked to the Burman Group open offer for the company.
In its final order dated May 13, Securities and Exchange Board of India found that Saluja had traded in shares of Religare Enterprises while in possession of unpublished price sensitive information (UPSI) concerning the Burman Group’s proposed acquisition. The regulator noted that the sensitive information window extended from September 8, 2023 until just before market opening on September 25, 2023, when JM Financial publicly announced the open offer to acquire a 26% stake at ₹235 per share.
The order stated that Saluja sold 12.93 lakh shares on September 21 and 22, 2023, soon after a meeting held on September 20 in Delhi with Anand C. Burman and portfolio manager Arjun Lamba. Evidence cited by the regulator included WhatsApp chats, call records, sworn testimonies and meeting details, which indicated that she was aware of the acquisition plans and was tracking developments around a potential takeover.
SEBI highlighted multiple interactions between the parties, including meetings on August 25, September 20 and September 24, 2023. It also referred to message exchanges after the announcement, where draft disclosures were allegedly shared for review, suggesting familiarity and prior knowledge of the transaction.
Concluding that Saluja qualified as an “insider” under the relevant regulations, the regulator said her trades breached insider trading norms. It calculated the ₹1.99 crore figure as losses avoided by comparing her sale prices with the stock’s closing level after the announcement.
Rejecting her defence that the trades were pre-approved internally, SEBI maintained that possession of UPSI overrides such approvals. It also dismissed her claim that the sales were meant to fund ESOP exercises in Care Health Insurance Ltd.
The regulator has directed her to deposit the amount along with 12% annual interest into the Investor Protection and Education Fund within 45 days, in addition to paying the ₹40 lakh penalty.
In its final order dated May 13, Securities and Exchange Board of India found that Saluja had traded in shares of Religare Enterprises while in possession of unpublished price sensitive information (UPSI) concerning the Burman Group’s proposed acquisition. The regulator noted that the sensitive information window extended from September 8, 2023 until just before market opening on September 25, 2023, when JM Financial publicly announced the open offer to acquire a 26% stake at ₹235 per share.
The order stated that Saluja sold 12.93 lakh shares on September 21 and 22, 2023, soon after a meeting held on September 20 in Delhi with Anand C. Burman and portfolio manager Arjun Lamba. Evidence cited by the regulator included WhatsApp chats, call records, sworn testimonies and meeting details, which indicated that she was aware of the acquisition plans and was tracking developments around a potential takeover.
SEBI highlighted multiple interactions between the parties, including meetings on August 25, September 20 and September 24, 2023. It also referred to message exchanges after the announcement, where draft disclosures were allegedly shared for review, suggesting familiarity and prior knowledge of the transaction.
Concluding that Saluja qualified as an “insider” under the relevant regulations, the regulator said her trades breached insider trading norms. It calculated the ₹1.99 crore figure as losses avoided by comparing her sale prices with the stock’s closing level after the announcement.
Rejecting her defence that the trades were pre-approved internally, SEBI maintained that possession of UPSI overrides such approvals. It also dismissed her claim that the sales were meant to fund ESOP exercises in Care Health Insurance Ltd.
The regulator has directed her to deposit the amount along with 12% annual interest into the Investor Protection and Education Fund within 45 days, in addition to paying the ₹40 lakh penalty.
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