SEBI v. Religare Enterprises Ltd. and Religare Finvest Ltd. (settlement, fund diversion, 2022)

Settled

✓ Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In May 2022 SEBI accepted settlement payments of Rs 10.51 crore in total from Religare Enterprises and its subsidiary Religare Finvest, who neither admitted nor denied allegations of fraud, misleading consolidated accounts and fund diversion. SEBI had alleged that about Rs 2,473.66 crore was diverted through the subsidiary for the benefit of promoter-linked entities.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

—

Alleged gain

—

Penalty as published

105m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The settlement order of 31 May 2022, signed by two Whole Time Members, closes enforcement proceedings against Religare Enterprises Ltd., a listed company, and its material subsidiary Religare Finvest Ltd. It follows a show cause notice of November 2020.

SEBI alleged, after complaints and an investigation, that Religare Finvest took part in a deceptive scheme that led to the diversion of roughly Rs 2,473.66 crore to promoter-linked entities, that the parent's consolidated financial statements were not true and fair and misled shareholders, and that the parent did not tell the exchanges about adverse observations from the Reserve Bank of India on the subsidiary's corporate loan book until 2017. The charges cited section 12A of the SEBI Act, Regulations 3 and 4 of the PFUTP Regulations and listing-obligation provisions.

The two applicants applied to settle under the 2018 settlement regulations without admitting or denying the findings of fact and law. Following the advisory committee's recommendation in March 2022, Religare Enterprises paid Rs 5,41,80,000 and Religare Finvest paid Rs 5,08,95,000, which is Rs 10,50,75,000 in all.

On payment, the enforcement proceedings were settled and SEBI undertook not to act again on the same defaults, with a reservation that it can resume if the applicants' statements prove untrue or they breach undertakings. The order contains no findings and no bar from the market.

The record does not show what became of the diverted funds, how individual promoters and directors fared, or any parallel civil or criminal proceedings. Because the case was settled, the allegations remain unproven.

This library tags the matter as misleading issuer disclosure, because of the alleged misstatement of consolidated accounts and withheld lender observations. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Misleading issuer disclosure — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-05-31 SEBI settlement order (31 May 2022)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order
• Order (PDF)

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.