Proxy Firm Criticises Religare AGM Delay, Calls For SEBI Probe

The unexplained postponement of Religare Enterprises’ annual general meeting (AGM) has concerned proxy advisory firm InGovern about the company’s corporate governance standards. The proxy advisor has asked the Securities and Exchange Board of India (Sebi) to look into the postponement in great detail.

The financial company Religare decided to move this year’s AGM from September to December. This delay coincides with accusations against its Executive Chairperson, Rashmi Saluja, of insider trading and anomalies in the issue of employee stock options (ESOPs). Saluja has also come under fire for impeding the Burmans, the company’s biggest shareholders, from making an open offer.

The company used the open offer’s possible effects on the business and its shareholders, along with the need for regulatory approvals, as justification for delaying the AGM. But InGovern has noted that this justification falls short, particularly in light of the fact that Religare has already made its financial figures public.

The lone Non-Independent Director on the Board, Dr. Rashmi Saluja, would have been reappointed if this AGM had taken place, which is why the proxy advisor has emphasised how important it is. Her standing on the Board may be impacted by the postponement of the AGM.