Diligent Media Corporation Limited has informed stock exchanges about receiving a significant GST demand order from tax authorities in Mumbai. The company disclosed this development under regulatory compliance requirements on March 31, 2026.

GST Demand Details

The Assistant Commissioner of State Tax, Mumbai has issued a demand order directing the company to remit approximately Rs 3.99 crores. This amount covers tax, interest, and penalty under the Central Goods and Services Tax Act, 2017 for the financial year 2019-20.

Nature of Dispute

The GST demand stems from the transfer of leasehold rights involving an industrial plot situated in Mumbai. The tax authorities have taken the position that the company failed to levy GST on the assignment of leasehold rights when the property was sold to M/s CTRL S (India) Pvt. Ltd.

The GST department has classified this transaction as a taxable supply of services under GST laws, leading to the demand for tax payment along with applicable interest and penalties.

Company's Legal Strategy

Diligent Media Corporation has indicated its intention to challenge this order through legal proceedings. The company plans to file a writ petition before the Hon'ble High Court of Bombay shortly.

This approach follows a similar strategy adopted for an earlier GST order of comparable nature. The company had previously filed a writ petition regarding the sale of another part of the same leasehold land to the same buyer, M/s CTRL S (India) Pvt. Ltd.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Company Secretary and Compliance Officer Jyoti Upadhyay signed the regulatory filing, ensuring transparency with stakeholders regarding this material development.

The company has provided detailed information about the litigation as required under applicable SEBI regulations and industry standards, maintaining compliance with disclosure norms for listed entities.

Diligent Media Corporation has amended its Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information, notifying stock exchanges of this regulatory compliance update on March 27, 2026. The amendment aligns with Regulation 8(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.

Regulatory Compliance Update

The company formally communicated the amendment to both the National Stock Exchange of India Limited and BSE Limited. The updated code has been uploaded on the company's website at www.dnaindia.com for public access.

Key Framework Components

The revised code establishes comprehensive guidelines for managing unpublished price sensitive information (UPSI). The framework addresses multiple aspects of information disclosure and handling procedures.

Fair Disclosure Requirements

The code mandates several critical disclosure practices:

• Prompt disclosure of UPSI that would impact price discovery
• Uniform and universal dissemination to avoid selective disclosure
• Appropriate response to queries on news reports and market rumors
• Handling of UPSI on a need-to-know basis
• Ensuring information shared with analysts is not UPSI

Disclosure and Dissemination Framework

The company has established specific protocols for information dissemination. The Chief Investor Relations Officer, designated as the Chief Financial Officer or another senior officer authorized by the Board of Directors, oversees the disclosure process.

Medium of Communication

The code outlines various channels for information disclosure:

• Prompt disclosure to stock exchanges where securities are listed
• Multiple media channels for maximum reach and quick dissemination
• Company website facilitation for disclosure
• Continuous disclosure requirements filing with exchanges

Legitimate Purpose Policy

The code includes a comprehensive policy for determining legitimate purposes for UPSI sharing. This framework identifies exceptions where insiders may communicate UPSI in the ordinary course of business.

Compliance Conditions

Recipients of UPSI under legitimate purposes must adhere to specific conditions:

• Maintain confidentiality of UPSI
• Refrain from trading while in possession of UPSI
• Obtain prior written consent for alternative use of information
• Comply with insider trading regulations

Digital Database Maintenance

The company maintains a structured digital database of persons with whom UPSI is shared, as required under insider trading regulations. This database includes names of persons or entities along with Permanent Account Number (PAN) or other authorized identifiers.

The code emphasizes that responsibility for policy adherence rests with both the person sharing UPSI and the recipient. Any violations result in disciplinary action by the company and notification to SEBI. The Board of Directors retains authority to review and amend the code in accordance with applicable laws and regulations.