Sebi taps Irdai on Saluja's Care Esops

Burmans had moved Sebi over Esops issued to Religare chief

- Anirudh Laskar

MUMBAI: The battle for Religare Enterprises Ltd (REL) has taken a new turn, with the market regulator seeking the views of its insurance counterpart on REL's insurance unit issuing hefty stock options to Rashmi Saluja, who chairs both companies.

On 4 January, the Securities and Exchange Board of India (Sebi) wrote to the Insurance Regulatory and Development Authority of India (Irdai) for its detailed views and comments on the grant of Care Health Insurance Ltd stock options to Saluja. The letter from Sebi's corporate finance department stated the matter is of high importance given the amount involved for incentivizing a single employee; and the Burman family's planned takeover of Religare.

Depending on the outcome of its probe into the issue of the stock options, Sebi will set out the observations or conditions for approving the Burmans' open offer, the letter said. Mint has seen a copy of the letter.

According to InGovern Research, a proxy advisor, Saluja's overall compensation may be close to ₹700 crore, including employee stock options (Esops) of Religare and Care Health totalling ₹480 crore; Religare Finvest Esops worth ₹150-200 crore; and a salary of ₹42 crore.