Regulatory Issues: Religare Appoints Former RBI Top Official as Group Head Compliance | CORPORATE ETHOS

Regulatory Issues: Religare Appoints Former RBI Top Official as Group Head Compliance

By: | April 26, 2018

Apr 26: Religare Enterprises Ltd (BSE: 532915, NSE: RELIGARE) has appointed former senior Reserve Bank of India (RBI) official Nitya Kishore Sahu, as Group Head-Compliance  in view of the regulatory issues facing the company and the difficulty in selling the company to Japan’s Daiichi Sankyo due to objections raised by lenders such as Yes Bank and Axis Bank.

Ashok Mehta, Interim Chief Executive Officer, Religare Enterprises Ltd, said that the new appointment will help strengthen Religare as a financial institution, particularly in the areas of regulatory compliance and governance.

Promoters Malvinder Singh and Shivinder Singh had resigned from the director board of Religare Enterprises and Fortis Healthcare. According to reports, the apex court had dismissed their plea aimed at blocking a Rs 3,500 cr international arbitration award against them over the 2008 deal to sell drug firm Ranbaxy Laboratories to Japan’s Daiichi Sankyo by allegedly hiding key information.
Religare Enterprises had recently informed the exchanges that the company and its promoters along with two subsidiaries have been barred by the Debts Recovery Tribunal from selling their assets. The subsidiaries are Religare Capital Markets and Religare Capital Markets International (Mauritius).

The tribunal passed the order in response to an application filed by Axis Bank for recovery of loan worth ₹312.93 crore availed by Religare Capital Markets International (Mauritius) Ltd. The DRT has also restrained the group from entering into settlement with lenders without the tribunal’s approval. “

Mr. Sahu is an experienced Central Banker, having worked with the Reserve Bank of India (RBI) for more than 35 years. In his illustrious career, he has handled several critical roles at RBI, especially in the areas of Banking Regulation and Supervision, Non-Banking Regulation and Supervision, Human Resource Management, Financial Management, Forex Control and Management, Customer Service, Financial Inclusion, National Clearing Cell, and Payment and Settlement Systems.

 In his last assignment at RBI, Mr. Sahu served as the Regional Director of RBI for the State of Jammu and Kashmir, driving the overall agenda for development of the financial sector in the state. Among other key assignments in recent years, he has been the Banking Ombudsman for the states of West Bengal and Sikkim, and has headed the Department of Non-Banking Supervision at RBI, Kolkata.  He has been a member of several important internal committees in the RBI which has given him a deep insight into policy making and also a global perspective on various issues. Among others, he was a member of the Internal Committee on Non-Banking Supervision and Regulation.