Due to the seller's inability to obtain the requisite clearances within the agreed timeline, the binding agreement has come to an end on March 15.
Religare Enterprises shares fell 4.5 percent intraday Friday after Edelweiss Financial Services decided to cancel deal to buy company's securities business as Religare failed to get the necessary regulatory approvals. Edelweiss shares gained over a percent intraday.
Religare, which has been selling its units over concerns of rising debt, said in January a private equity firm would buy its health insurance business.
Edelweiss Financial, the wealth management unit of Mumbai-based Edelweiss Group, said in December it would buy the securities business for about Rs 250 crore to expand its position in the Indian asset and wealth management industry.
"Due to the seller's inability to obtain the requisite clearances within the agreed timeline, the binding agreement has come to an end on March 15," Edelweiss said in a statement on Friday.
At 11:58 hours IST, the stock price was quoting at Rs 57.25, down Rs 0.85, or 1.46 percent on the BSE.