Religare Enterprises Ltd (REL) on Saturday said stock exchanges have removed Malvinder Mohan Singh and Shivinder Mohan Singh from promoters and promoter group category on the request of the company.
Religare Finvest Ltd, a subsidiary of Religare Enterprises has been in financial distress due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh. Multiple investigative agencies are probing the case of financial bungling of about Rs 4,000 crore.
The application towards reclassification of erstwhile promoters as public shareholders have been approved, Religare Enterprises said in a statement.
Apart from Singh brothers, it said, names of Japna Malvinder Singh, Aditi Shivinder Singh, Abhishek Singh, RHC Finance Private Limited, RHC Holding Private Limited and PS Trust have been reclassified as public shareholders.
All these entities together have 7,66,754 shares or 0.3 per cent of the total holding, it said.
"The company already has diversified set of shareholders and institutional investors and since last few years the company's is being run by a highly professional Board and Management. The current reclassification has done justice to the company and its highest set of Corporate Governance standards, which have laid foundation of Religare 2.0," REL Chairperson Rashmi Saluja said.
Earlier this week, the company got board approval to raise Rs 570 crore via preferential issuance of shares to a clutch of investors, including existing shareholders, to fund its business plans.
