Kirloskar Industries Shares in Focus: Decided to Challenge SEBI’s Directive

On December 31, 2024, Kirloskar Industries Ltd announced its intention to challenge a recent directive from the Securities and Exchange Board of India (SEBI). In a letter dated December 30, 2024, SEBI advised the company to disclose the Deed of Family Settlement (DFS) that was entered into by the Kirloskar family on September 11, 2009. The disclosure was requested under the SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations.

Kirloskar’s Response to SEBI’s Request

Kirloskar Industries responded through a regulatory filing, clarifying that SEBI’s recommendation pertains to a family settlement agreement involving the Kirloskar family members in their personal capacity. However, the company emphasized that the matter of whether the DFS is binding on the Kirloskar companies remains unresolved. It is currently under dispute in civil court, dating back to 2018.

Concerns Over SEBI’s Intervention

The company raised concerns about SEBI’s intervention in a matter that is still sub-judice, or pending before the court. It further expressed dissatisfaction with SEBI’s decision, stating that it contains factual inaccuracies and overlooks well-established principles of contract law, corporate law, and company law. According to the company, the DFS does not apply to Kirloskar Industries and does not impose any restrictions or liabilities on the business.

Legal Action and Company’s Position

Kirloskar Industries asserted that it is not bound by the DFS, nor does it affect the company in any way. In light of this, the company is seeking legal counsel to challenge SEBI’s directive. The company expressed its confidence in the judiciary’s ability to deliver justice, affirming its commitment to the principles of justice and fairness in resolving this matter.

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