In connection with the fund diversion case involving Religare Finvest, SEBI issued an order on Wednesday directing Shivi Holdings to have their bank and demat accounts seized in order to recover Rs 5.35 crore.
Religare Enterprises Ltd. (REL) is the parent company of Religare Finvest Ltd. (RFL).
According to the attachment order, the Securities and Exchange Board of India (SEBI) has initiated recovery proceedings against Shivi Holdings to recover Rs 5.35 crore, which includes interests, all costs, charges, and expenses, among other things.
In its notice, SEBI requested that Shivi Holdings’ accounts not be debited by any banks, depositories, or mutual funds. Credits, on the other hand, are permitted.
In addition, the regulator of the market has instructed all banks to attach all defaulters’ accounts, including lockers.
In the same matter, SEBI had ordered banks and depositories to attach the bank and demat accounts of Shivinder Mohan Singh and four other entities in order to recover Rs 32.10 crore.
Malav Holdings, RHC Holding, ANR Securities, and Religare Corporate Services (now Finserve Shared Services) are the organizations. Additionally, they were REL’s former promoters.
The case involves the misappropriation of funds totaling Rs 2,473.66 crore by Religare Finvest Ltd (RFL), a subsidiary of Religare Enterprises Ltd (REL), in the form of loans through layers of entities for the ultimate benefit of entities controlled by the former promoters, the Singh brothers, from FY 2014-15 to FY 2017-18.
SEBI noted that these diverted funds never came back to RFL.
REL shareholders were misled into investing in REL securities or remaining invested in REL shares because the diversion of funds was not made public. According to SEBI’s order, the apparent rerouting of funds caused an indirect price manipulation of REL shares.
They broke the rules of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) by engaging in such conduct.
