![Shriram Subramaniam](https://img.etimg.com/thumb/msid-111136176,width-210,height-158,imgsize-4306,resizemode-75/shriram-subramaniam.jpg)
The Burmans versus Rashmi Saluja the way this entire issue has panned out for several quarters now, but today in a very hard hitting order from SEBI, we see they have directed the board to go ahead and facilitate and seek all the statutory requirements for this open offer. First of all, your prima facie observations on the tonality of this order?
Shriram Subramanian: This is the right order by SEBI. It is definitely hard hitting and it really pulls up the management and the board of Religare which is just frustrating and which has thought of itself as very highly of themselves and which is frustrating the efforts and even the rights of shareholders. Not only that, they have even cocked a snook at the regulator by not listening to the SEBI advice which was given before.
So, the board's contention that SEBI does not have jurisdiction in this matter is totally inappropriate. It is like showing a red card to a regulator. So, this is totally bad. How could the board appropriate rights which naturally belong to shareholders. Shareholders have been denied their rights. Even minority shareholders for that matter who could tender their shares if the open offer goes through. But at the end of the day, the board has sought to give itself primacy and has not acted in the interest of the company at large, not acted in the interest of minority shareholders, not acted in the interest of anybody for that matter. They have actually trampled upon the securities law itself in India.
How does the case move from here on? You think, the current management has also reacted right now, just a while back saying that they will comply and move forward to seek all the required approvals. But can they challenge this? What is the move ahead because every shareholder, the retail shareholder, many of them I know among the institutional side as well were waiting for some clarity. They have been in a roaring bull market seeing their stocks stuck. So, what is in your view the chain of events which happened from here?
Shriram Subramanian: There is no other than this one. Its an entry order by SEBI and the board must act in haste to at least apply to RBI, to apply to IRDAI, etc. And this is the second order by SEBI. They had given the first one as advice, now they have given it as a hard hitting order. So, if they do not listen to the SEBI order, I think the regulator may crack the whip. So, the board has no other choice but to apply to RBI and IRDAI for the open offer to give effect to the open offer because this is what I have been saying since the last nine months.
The laws are framed in such a manner that there should be an automatic trigger for the acquisition to go through. Even SEBI does not have a jurisdiction to stop it. In that sense, this one which is a process which is smooth and which has been time-tested for that matter. Two, Rashmi Saluja and the other directors have been saying that the Burmans are not fit and proper, but they have not furnished any documentary evidence and this is made out even in the SEBI order. All these are frustrating, not just for the company, the interest of the shareholders and also frustrating securities law and the regulator itself.
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Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price