The Reserve Bank of India (RBI) has officially withdrawn the Corrective Action Plan (CAP) previously enforced on Religare Finvest Limited (RFL), a fully-owned subsidiary of Religare Enterprises Limited (REL).
This move, effective from 23 July 2025, marks the end of restrictions that were in place since 18 January 2018. The CAP was introduced due to serious irregularities uncovered during an inspection based on the company’s financial position as of 31 March 2017.
RFL had faced significant financial distress, having reported cumulative losses of ₹2,270 crore up to March 2022. For the previous financial year, its expenditure exceeded ₹639 crore, while income stood at just ₹275.25 crore.
The RBI had placed the NBFC under the CAP framework due to large-scale fund misappropriation from both REL and RFL. However, the company made progress by completing a one-time settlement with 16 lenders in March 2023, repaying over ₹9,000 crore to the banking system through internal collections. Despite the withdrawal of CAP, RFL is still required to maintain compliance with all prudential norms.
Earlier in 2025, the Burman family secured a controlling stake in Religare Enterprises Limited following the conclusion of an open offer. This acquisition officially made them the promoters of REL.
Post-transaction, their holding amounts to 83,201,819 equity shares, equating to a 25.16% stake in the company. The shares were acquired through 4 family-owned firms, M B Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Co.
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As of July 24, 2025, at 11:55 PM, Religare Enterprises share price is trading at ₹282.24 per share, reflecting a decline of 2.61%. Over the past month, the stock has surged by 26.27%. The stock's 52-week high stands at ₹320 per share, while its low is ₹202.52 per share.
The withdrawal of RBI's Corrective Action Plan signals a significant turnaround for Religare Finvest, reflecting improved financial health and governance. With the Burman family now holding a controlling stake, the company is positioned for renewed stability and future growth, provided it maintains compliance with all regulatory requirements.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 24, 2025, 2:47 PM IST
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