Religare Finvest case: Sebi orders attachment of bank, demat accounts of Shivinder Mohan Singh, 4 others

The recovery proceedings against these entities — Shivinder Mohan Singh, Malav Holdings, RHC Holding, ANR Securities and Religare Corporate Services (now known as Finserve Shared Services) — for Rs 32.10 crore.

The amount includes interest, all costs, charges and expenses, the Securities and Exchange Board of India said in an attachment order passed on Monday.

In its notice, Sebi asked all the banks, depositories and mutual funds not to allow any debit from the accounts of Singh, Malav Holdings, RHC Holding and ANR Securities. However, credits have been allowed.

Further, the market watchdog has directed all banks to attach all accounts, including lockers, of all the defaulters.

Earlier this month, Sebi sent notices to various entities, including erstwhile promoters of

Malvinder Mohan Singh and Shivinder Mohan Singh, asking them to pay Rs 48.15 crore within 15 days in a fund diversion case of Religare Finvest.

RHC Holding and Malav Holdings were also the former promoters of Religare, while ANR Securities and Religare Corporate Services was a wholly-owned subsidiary of RHC Holding. The regulator also warned of attachment of assets and bank accounts, if they fail to make the payment.

The notice came after the entities failed to pay the fine imposed on them by Sebi.

The case relates to the diversion of funds to the tune of Rs 2,473.66 crore of Religare

Ltd (RFL), a subsidiary of Religare Enterprises Ltd (REL), during FY 2014-15 till FY 2017-18, in the garb of loans through layers of entities for the ultimate benefits of entities controlled by the erstwhile promoters — Singh brothers.

Sebi noted that these diverted funds never came back to RFL.

The diversion of funds was never disclosed to the shareholders of REL, which misled them to remain invested in the shares of REL or deal in the securities of REL. Thus, the apparent diversion of funds led to indirect manipulation of the price of shares of REL, Sebi said in its order.

By indulging in such acts, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.