RBI rejects proposed appointment of ex-interim CEO, other on Religare's board

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Religare Enterprises said Tuesday that the Reserve Bank of India has rejected proposed appointment of two persons 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 has served as the interim chief executive officer of the company in the past.

Religare had approved to appoint Ashwani Mehta as the non-executive non-independent director of the company on November 20, 2018. Ashwani is an MS in general surgery and is one of the pioneers to start laparoscopic surgery in northern India.

In June, the company's group chief executive officer (CEO) Milind Narendra Patel had resigned from his post which he had assumed in August 2018, after stepping down of Ashok Mehta as the interim CEO.

Patel continues as the group CEO, serving the notice period as per the company policies.

The embattled financial conglomerate has been trying to tide over the issues surfaced during the time of erstwhile promoter brothers -- Malvinder Singh and Shivinder Singh -- in the company with a new management team on board.

In May, the company had said the new management will ensure good governance and accountability and termed the allegations made by its former chief Sunil Godhwani as an attempt to divert attention from fraudulent transactions.

According to the company's website, the firm currently has five independent directors on its board.

Shares of Religare on Tuesday closed 5 per cent down at Rs 39.90 apiece on the BSE.