Kirloskar Ferrous clarifies family settlement disclosure, not bound by terms

Kirloskar Ferrous Industries Limited (KFIL) has announced a clarification regarding its disclosure obligations under SEBI regulations concerning a Deed of Family Settlement (DFS) dated September 11, 2009. The company had filed a writ petition challenging Regulation 30A, which mandates the disclosure of certain agreements. During the hearing, SEBI agreed that disclosure of an agreement by a listed entity does not automatically mean the entity admits it as binding or impacting its management, control, or creating any liability. Listed entities may include a disclaimer with their disclosures.

KFIL will now disclose the DFS, as read with the SEBI clarifications, subject to disclaimers. The company explicitly states that the DFS does not bind it, nor does it admit to the DFS's contents or impact on its management or control. KFIL was not a party to the DFS, has not ratified it, and does not agree to be bound by it.

The DFS, initially dated September 11, 2009, and subsequently amended on October 12, 2009, outlines the transfer of shares and financial settlements among key family members. For example, under the amended Schedule V, VSK or his nominees were to purchase shares from Designated Company A totaling INR 2,50,03,76,295, from Designated Company B totaling INR 2,67,04,973, and from Designated Company C totaling INR 32,45,130. Additionally, under the original DFS, KSL shares were to be transferred to BVH and individual parties, including Kirloskar Ferrous Industries Ltd. shares totaling 12,16,666 for Mr. Atul C. Kirloskar and 12,16,667 for Mr. Rahul C. Kirloskar and Mr. Gautam A. Kulkarni each.