Kirloskar Oil Engines File Appeal Before SAT Challenging SEBI Order

Kirloskar Industries Ltd has filed an appeal with the Securities Appellate Tribunal (SAT) against a directive issued by the Securities and Exchange Board of India (SEBI). The directive requires the company to disclose a 2009 Deed of Family Settlement (DFS) under SEBI’s Listing Obligations and Disclosure Requirements (LODR). The company argues that the matter is already under judicial scrutiny and questions SEBI’s authority to intervene.

SEBI’s Directive to Disclose Family Settlement

SEBI, in a letter dated 30th December 2024, advised Kirloskar Industries to disclose the DFS signed on 11th September 2009 by members of the Kirloskar family. The market regulator cited Regulation 30A of the SEBI LODR, which mandates such disclosures for transparency. Following this, an order dated 31st December 2024 reinforced the directive.

In response, Kirloskar Industries filed an appeal with SAT. The company argued that the DFS is a personal agreement among family members and does not directly concern the corporate structure or obligations of the Kirloskar companies. The company made its stance public through a regulatory filing.

Concerns Over Sub-Judice Matters and Legal Principles

Kirloskar Industries emphasised that the enforceability of the DFS on the company has been under deliberation in the civil court since 2018. The company criticised SEBI’s involvement, stating that the regulatory decision overlooked key legal principles and factual accuracy.

“The question of whether the DFS is binding on Kirloskar companies has been pending in civil court since 2018. Despite this, SEBI has opined on the matter. The decision contains factual inaccuracies and ignores principles of contract, corporate, and company law,” the company noted in its filing.

Kirloskar Industries Share Performance

As of January 03, 2025, 3:20 PM, the shares of Kirloskar Industries were trading at ₹4,281.85 per share with a decline of 3% from its previous day’s closing price.

Conclusion

Kirloskar Industries’ appeal against SEBI’s order raises significant questions about regulatory intervention in sub-judice matters. The final verdict on this issue will clarify the boundaries of corporate transparency requirements and legal jurisdiction.

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