SEBI Finds Ex-Religare Chair Rashmi Saluja Guilty of Insider Trading, Orders Rs 2 Crore Payback
SEBI has found former Religare Enterprises chairperson Rashmi Saluja guilty of insider trading and ordered her to return unlawful gains.
The Securities and Exchange Board of India (SEBI) has found former Religare Enterprises chairperson Rashmi Saluja guilty of insider trading and directed her to return unlawful gains of nearly Rs 1.99 crore, according to an order issued by the market regulator. SEBI also imposed a monetary penalty of Rs 40 lakh, stating that Saluja had traded in company shares while in possession of unpublished price-sensitive information (UPSI) linked to the Burman family’s open offer for Religare Enterprises announced in September 2023.
According to SEBI’s findings, Saluja sold around 12.9 lakh shares of Religare Enterprises on September 21 and 22, 2023, just days before the public announcement of the Burman family’s open offer on September 25. The regulator observed that these transactions helped her avoid losses of approximately Rs 2 crore, as the company’s stock price declined after the announcement became public. SEBI stated that the timing of the trades indicated access to confidential information not available to the broader market.
The market regulator further noted that the Burman Group had shared details of the proposed open offer with Saluja before it was disclosed publicly. As part of its investigation, SEBI relied on multiple pieces of evidence, including WhatsApp conversations, records of meetings, and hotel logs that allegedly confirmed interactions between the parties. The order stated that Saluja’s actions amounted to a violation of insider trading norms under securities market regulations.
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The case originated from a complaint filed in November 2023 by investment firms associated with the Burman family, which alleged that Saluja sold shares worth Rs 34.71 crore shortly after a meeting on September 20, 2023, where the open offer was discussed. The complaint triggered a detailed investigation by SEBI under Section 11 of the SEBI Act, 1992, which empowers the regulator to take enforcement action against market manipulation and insider trading violations.
In addition to the initial allegations, the Burman group also claimed in May 2024 that Saluja had sold another 27.1 lakh shares worth Rs 43 crore between March 26 and 28, 2024, while allegedly possessing further undisclosed price-sensitive information. These additional transactions are still under scrutiny in related proceedings, adding further complexity to the ongoing regulatory and legal disputes surrounding Religare Enterprises.
The SEBI order comes amid wider investigations involving Religare Enterprises and its senior executives, including recent searches conducted by the Enforcement Directorate at multiple premises linked to the company. While the company has stated that no incriminating material was found, authorities have frozen certain employee stock option plan (ESOP) shares linked to Saluja and others. The case remains under regulatory review, with further proceedings expected before the Securities Appellate Tribunal.
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