India's Burman family gets RBI nod to raise stake in Religare

The Reserve Bank of India (RBI) approved billionaire Burman family's plan to buy more shares in financial services provider Religare Enterprises, the company said on Tuesday.

The Burmans, who founded and control consumer goods conglomerate Dabur India, raised their stake in Religare to nearly 25 per cent in September last year, triggering a so-called open offer to buy more shares.

The Burmans planned to buy around 26 per cent more of Religare to bolster their presence in the rapidly growing financial services sector, but Religare refused to apply for regulatory approvals for the open offer.

Religare sought to prevent the Burmans from raising their stake, saying the offer was "riddled with irregularities and statutory violations and cast serious doubts on the fit and proper status of the acquirers".

The Burmans then approached the Securities and Exchange Board of India (SEBI), which, in June, asked Religare to apply for regulatory approvals for the open offer to go ahead.

Religare's shares were up 4 per cent on Tuesday and have gained about 35 per cent so far this year.