Religare Enterprises Scheme of Arrangement Rejected by RBI

Religare Enterprises Limited (REL) and its subsidiary Religare Finvest Limited (RFL) have received a communication from the Reserve Bank of India (RBI) stating that their application for a Scheme of Arrangement has not been acceded to. This scheme involved the transfer of a demerged undertaking from REL to RFL, and was subject to various regulatory approvals. While the company had previously received 'no objection' letters from NSE and 'no adverse observations' from BSE, the RBI's decision marks a significant setback. REL and RFL intend to engage with the RBI to provide further clarifications.