India

Sebi orders the attachment of the bank and demat accounts of Shivinder Mohan Singh and four others in the Religare Finvest case

Sebi has ordered the attachment of the bank and demat accounts of Shivinder Mohan Singh and four other businesses in order to recover Rs 32.10 crore relating to the Religare Finvest fund diversion case.

Religare Finvest Ltd (RFL) is a Religare Enterprises Ltd subsidiary (REL).

Shivinder Mohan Singh, Malav Holdings, RHC Holding, ANR Securities, and Religare Corporate Services (formerly known as Finserve Shared Services) face Rs 32.10 crore in recovery proceedings.

In an attachment order issued on Monday, the Securities and Exchange Board of India stated that the amount includes all interest, costs, fees, and expenses.

In its notice, Sebi instructed all banks, depositories, and mutual funds not to debit Singh, Malav Holdings, RHC Holdings, or ANR Securities’ accounts. However, credits were permitted.

In addition, the market regulator has instructed all banks to seize the accounts and lockers of all defaulters.

In a fund diversion case involving Religare Finvest, Sebi served warnings to different businesses, including the former promoters of Religare Enterprises, Malvinder Mohan Singh and Shivinder Mohan Singh, requiring them to pay Rs 48.15 crore within 15 days.

RHC Holding and Malav Holdings were also the original promoters of Religare, whereas RHC Holding was the sole owner of ANR Securities and Religare Corporate Services.

The agency also warned that assets and bank accounts could be attached if the payment was not made.

The warning was issued after the entities failed to pay the Sebi-imposed fee.

The case involves the diversion of Rs 2,473.66 crore of Religare Finvest Ltd (RFL), a subsidiary of Religare Enterprises Ltd (REL), disguised as loans through multiple layers of organisations for the ultimate benefit of entities controlled by the company’s former proprietors, the Singh brothers.

Sebi observed that the diverted cash was never returned to RFL.

The diversion of funds was never disclosed to REL’s shareholders, deceiving them into remaining invested in the company’s shares and trading its securities. Sebi stated in its order that the apparent diversion of money led to indirect manipulation of the share price of REL.

By engaging in such conduct, they breached PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.

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Nisha

Hi, my name is Nisha and I'm an educational journalist based in India. I've always been passionate about the power of education to transform lives, and that's what led me to pursue a career in journalism focused on this area. I completed my Bachelor's degree in English from Hindu College in Delhi in 2013 and then went on to earn my Master's in Journalism and Mass Communication from the Indian Institute of Mass Communication in 2017. During my studies, I also completed several short-term courses on Education in India, Sociology, and other related subjects to deepen my knowledge in this field. I'm particularly interested in improving access to quality education in rural areas, where students often face significant challenges. I've worked on a number of initiatives to address this issue, including advocating for better policies, resources, and practices that can make a difference. As an educational journalist, I'm passionate about using my platform to highlight important issues in the education space. I've covered a wide range of topics, including the impact of technology in the classroom, innovative approaches to teaching and learning, and the challenges facing students from marginalized communities. One of the things I love most about my work is the opportunity to constantly learn and grow. I'm an avid reader and believe that reading is key to expanding one's knowledge and perspective. I'm always seeking out new ideas and insights to help me better understand the world around me. In summary, as an educational journalist, I'm dedicated to using my skills and expertise to make a positive impact in the field of education. I'm committed to improving access to quality education for all students and to using my platform to raise awareness about important issues in this area.

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