RBI Rejects Religare Request For Ex-Interim CEO’s Appointment To Board
Religare Enterprises continues to battle issues that surfaced under erstwhile promoters Singh brothers. (Photographer: Prashanth Vishwanathan/Bloomberg)

RBI Rejects Religare Request For Ex-Interim CEO’s Appointment To Board

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The Reserve Bank of India on Tuesday rejected Religare Enterprises Ltd.’s proposal for appointment of two persons, including a former interim chief executive officer, to the company’s board of directors.

"The Reserve Bank of India vide its letter dated July 15, 2019 has communicated that the company's request for appointment of Ashok Mehta and Ashwani Mehta as non-executive, non-independent directors has not been acceded to," Religare Enterprises said in a regulatory filing.

Ashok Mehta, who was appointed Interim CEO in April 2018 after the exit of CEO Sunil Godhwani, resigned from the post in August 2018. Group CEO Milind Narendra Patel took his place but he too resigned in June 2019. Religare Enterprises had approved the appointment of Ashwani Mehta, one of the pioneers of laparoscopic surgery in North India, as the non-executive non-independent director on Nov. 20, 2018.

Religare Enterprises continues to battle issues that surfaced under erstwhile promoters Singh brothers—Malvinder and Shivinder. In May, the company said its new management will ensure good governance and accountability and termed the allegations made by Godhwani as an attempt to divert attention from fraudulent transactions.

According to Religare Enterprises’ website, the firm currently has five independent directors on its board.

On Tuesday, Religare Enterprises’ shares fell 5 percent to Rs 39.90 apiece on the BSE while the benchmark Sensex gained 0.60 percent to end the day at 39,131.04 points.

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