Atul, Rahul Kirloskar to challenge SEBI order on family settlement

Entities under Atul and Rahul Kirloskar’s control – Kirloskar Oil Engines (KOEL), Kirloskar Industries (KIL), Kirloskar Pneumatic (KPCL), and Kirloskar Ferrous (KFL) – are gearing up for a legal battle against a Securities and Exchange Board of India (SEBI) directive. The order requires these companies to disclose a 2009 family settlement agreement signed among Kirloskar family members in their personal capacities.

Also ReadFood companies in APAC focusing on healthy foods as consumers ready to spend more, says GlobalData

On December 30, SEBI issued letters to the four listed companies, citing their failure to disclose the “Deed of Family Settlement” (DFS) under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR). SEBI advised that the DFS, dated September 11, 2009, should be made public.

The companies responded sharply, arguing that SEBI’s directive contained factual inaccuracies and overlooked established principles of contract, corporate, and company law. They maintained that the DFS did not impose any obligations or restrictions on the companies, nor was it binding on them. They also emphasised that the matter has been sub-judice, with a Civil Court examining the DFS’s enforceability since 2018.

The dispute centres on the DFS, which delineated separate business lines and companies for different Kirloskar family members. Sanjay Kirloskar of Kirloskar Brothers (KBL) disclosed the DFS in 2023, citing SEBI’s LODR rules, which require promoters to disclose agreements affecting management control. Under the 2009 agreement, Sanjay Kirloskar retained control of KBL, while Atul and Rahul Kirloskar took over KOEL, KIL, KFL, and KPCL. The DFS also included a non-compete clause prohibiting family members and their companies from engaging in rival businesses.

Also ReadFrom Aerospace to Space: How Rossell Techsys Ltd. Is shaping the future of innovation

Legal tensions escalated as SEBI’s directive coincided with ongoing court cases between the cousins, including disputes over alleged violations of the DFS’s non-compete provisions. 

 » Read More

Related Articles

New NPS guidelines issued! Officials told to process like OPS – All you need to know

The Central Pension Accounting Office (CPAO) has issued new guidelines to ensure timely pension to retired employees of the National Pension System (NPS). In an Office Memorandum (OM) issued on March 12, 2025, the CPAO has reminded the concerned officials that NPS pension cases should be processed in the same manner as the Old Pension

Sukanya Samriddhi Yojana to Mutual Fund SIP, best investment options for your child

Securing your children’s financial future is one of the most important responsibilities of a parent. From education and marriage to other key life expenses, your growing children will need financial support at different stages. To ensure they have the necessary funds when required, it’s essential to diversify your investments across different schemes. In India, several

India sees record deal activity in February at $7.2 billion

India witnessed a record-breaking surge in deal activity in February, with 226 M&A and private equity deals totaling USD 7.2 billion — the highest monthly deal volume in the last three years, according to the Dealtracker report of Grant Thornton Bharat. “This represents a 67 per cent increase in volumes and a 5.4-fold increase in

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

New NPS guidelines issued! Officials told to process like OPS – All you need to know

The Central Pension Accounting Office (CPAO) has issued new guidelines to ensure timely pension to retired employees of the National Pension System (NPS). In an Office Memorandum (OM) issued on March 12, 2025, the CPAO has reminded the concerned officials that NPS pension cases should be processed in the same manner as the Old Pension

Sukanya Samriddhi Yojana to Mutual Fund SIP, best investment options for your child

Securing your children’s financial future is one of the most important responsibilities of a parent. From education and marriage to other key life expenses, your growing children will need financial support at different stages. To ensure they have the necessary funds when required, it’s essential to diversify your investments across different schemes. In India, several

India sees record deal activity in February at $7.2 billion

India witnessed a record-breaking surge in deal activity in February, with 226 M&A and private equity deals totaling USD 7.2 billion — the highest monthly deal volume in the last three years, according to the Dealtracker report of Grant Thornton Bharat. “This represents a 67 per cent increase in volumes and a 5.4-fold increase in

Replace Chinese goods with US imports – govt tells industry amidst Trump’s tariff threat

Amid concerns over potential export disruptions due to US reciprocal tariffs set to take effect on April 2, the Ministry of Commerce and Industry has urged Indian industry players to explore areas where imports from China and other countries could be substituted with goods sourced from the United States, according to executives familiar with the

China fund managers face 50% pay cut for poor performance — Here’s what’s changing

Fund managers in China may see a major blow to their salaries. If they do not meet the set performance standards, their salaries can be cut by up to 50%. This decision is part of a comprehensive reform in the country’s 33 trillion yuan ($4.6 trillion) mutual fund industry. According to a Bloomberg report, the