RBI rejects Religare’s demerger proposal
The regulator has not disclosed the specific reasons for rejecting the proposal
The Reserve Bank of India (RBI) has declined a demerger proposal put forth by Religare Enterprises (REL). The plan aimed to separate the company's lending and financial services business into a subsidiary, Religare Finvest (RFL), while REL would focus on insurance. Under this arrangement, shareholders would receive one share of RFL for each share of REL they held.
However, the RBI has not provided specific reasons for rejecting the demerger. The company has stated that it will continue to engage with the regulator and provide further clarification as needed.
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