Companies
Religare CFO Nitin Aggarwal said to have quit, company yet to notify exchanges
Summary
- The development comes as the company's management battles a takeover bid by the Burman family and its AGM was postponed by three months to December.
Religare Enterprises Ltd chief financial officer Nitin Aggarwal resigned about two weeks ago, though the company is yet to report the development to the stock exchanges, two people with knowledge of the matter told Mint.
Aggarwal did not respond to requests for comment on his resignation. Religare did not respond to queries on Tuesday on whether it would inform the stock exchanges about Aggarwal's resignation.
A company representative earlier denied that Aggarwal had stepped down.
“No one has resigned," a public relations representative of Religare Enterprises said on Sunday.
Typically, listed companies are expected to disclose resignations of key management personnel within a day.
"As per LODR (listing obligations and disclosure requirements) regulations, resignation of a KMP (which includes CFO) is required to be disclosed within 24 hours, with the letter of resignation along with detailed reasons for the resignation as given by the key managerial personnel to be disclosed within seven days from the date that such resignation comes into effect, " said Manendra Singh, a partner at Economic Laws Practice.
Also Read: What is driving the Burmans’ quest for Religare?
Aggarwal joined Religare in 2015 as CFO of the capital markets and wealth management business, according to his LinkedIn profile. He was appointed CFO of Religare’s broking business in 2017. In May 2023, he was appointed as group CFO of Religare Enterprises.
Aggarwal’s resignation comes as the management of Religare led by chairperson Rashmi Saluja battles a takeover bid through an open offer by the Burman family and a postponement of the company’s annual general meeting. Saluja was up for reappointment at the AGM, initially scheduled for September, and now delayed by three months, much to the consternation of investors.
Also Read: Religare upsets investors by delaying AGM
According to Section 152 (6) of the Companies Act, one-third of the directors of a company, excluding independent directors, need to retire at each AGM. Saluja is the only non-independent director on the Religare board, and her retirement comes up at each AGM. The vote to reappoint her will now take place in December, after the company secured approval to defer the AGM by three months.
Takeover turmoil
The Burmans are promoters of consumer goods company Dabur India Ltd and hold a 25.18% stake in Religare, which gives them veto rights on any special resolution.
Religare told the stock exchanges on Monday that the AGM had been delayed because of pending regulatory approvals with respect to the ongoing open offer. Religare has been at an impasse since 25 September, when the Burman family signalled its intent to acquire a controlling stake in Religare Enterprises.
Soon after the takeover announcement, the current management turned hostile to the takeover and argued that the Burman family was not fit and proper to run the company. However, the Saluja-led Religare board’s resistance to the takeover has caught regulatory attention in recent months.
Also Read: Battle for Religare: Regulator enters the picture
On 19 June, the Securities and Exchange Board of India (Sebi) pulled up the Religare management for its failure to file the necessary approvals and asked the company to submit them promptly. Sebi also issued a show-cause notice to the company’s board asking why it should not act against them. The company and the board have appealed this decision.
