Shares of Religare Enterprises Friday zoomed 10 per cent a day after Sebi ordered Religare Finvest and the company to recall loans worth over Rs 2,300 crore that were diverted to promoters Shivinder Mohan Singh, Malvinder Mohan Singh and 21 other entities after finding preliminary evidence of fund diversions.
The stock jumped 9.98 per cent to close at Rs 31.40 -- its upper circuit limit of Rs 31.40 -- on the BSE.
On the NSE, shares zoomed 9.96 per cent to close at Rs 31.45.
On the traded volume front, 2.63 lakh shares were traded on the BSE and over 11 lakh units on the NSE during the day.
Religare Finvest Ltd (RFL) is a subsidiary of Religare Enterprises Ltd (REL). At the end of December 2018, the Singh brothers were among the promoters of REL.
"It was observed that funds amounting to Rs 2,315.09 crore had been diverted from the books of RFL for the utilisation of promoters and promoter group entities of REL," the regulator said in an order on Thursday.
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The regulator has directed the two companies to "initiate steps to recall all the loans amounting to Rs 2,315.09 crore" along with due interest within three months.
Besides, the Singh brothers have been asked not to associate themselves with the affairs of REL and RFL till further directions.