Muthoot Finance clarifies ED inquiry regarding Srei NCDs

Muthoot Finance Limited (MFL) has addressed a recent news article claiming an Enforcement Directorate (ED) inquiry into its managing director concerning alleged investor fraud. The company clarified on October 11, 2025, that the matter relates to public issues of secured non-convertible debentures (NCDs) by Srei Infrastructure Finance Limited and Srei Equipment Finance Ltd in 2018. Muthoot Securities Limited (MSTL), a SEBI-registered stockbroking company affiliated with MFL, acted as one of several brokers for these NCD distributions.

According to MFL, investors independently applied for these NCDs through MSTL. MFL explicitly stated that no funds were collected, handled, or routed through Muthoot Finance Limited. The company confirmed that its managing director was called by the ED to provide clarifications, an interaction MFL described as purely for information sharing, with full cooperation extended.

MFL categorically denied allegations in the news report of money laundering, investor fraud, or misrepresentation regarding Srei Cos as a sister concern. The company emphasized that neither Muthoot Finance nor its officials engaged in activities violating the Prevention of Money Laundering Act, 2002. MFL maintains no commercial or business relationship with Srei Cos and asserts that any contrary implications are inaccurate and baseless.