Religare Enterprises is seeing a lot of activity on its counter today; opening 4% higher at Rs.127.40, the stock rose over 12% to an intraday high at Rs.137.40 while its 20% UC for the day is at Rs.147. Volumes are up over 4x.
There was an update on its revival plan for Religare Finvest (RFL), a wholly-owned subsidiary of Religare Enterprises.
The news is that lenders have in-principally agreed to consider the One-Time Settlement ("OTS") proposal of RFL.
The company has been a victim of siphoning off of funds by its erstwhile promoters. It has initiated and pursuing legal actions for recovery and now begun its path towards revival. Post RFL's one time settlement completion, it will have healthy prudential ratios well above those prescribed by RBI.
As per SEBI’s settlement order and statement, RFL paid Rs.5.08 crore and Religare Enterprises paid Rs.5.42 crore towards settlement amount. SEBI said that pending enforcement proceedings for the alleged default are settled qua the applicants, Sebi said in a statement. It added that it will not initiate enforcement action against the applicants for the said defaults.