Izmo promoter group transfer of 4.99% shares rejected by depository participant
- Inter-se transfer of 7,48,128 shares (4.99%) from Shashi Soni to Dinanath Soni failed
- Rejection by DP Anand Rathi cited lack of documentary proof for relationship verification
- Promoter group plans to route transfer through alternative Depository Participant if needed
- Transaction remains exempt under SEBI SAST Regulations as gift between immediate relatives
*this image is generated using AI for illustrative purposes only.
Izmo Limited reported the non-completion of an inter-se transfer of 7,48,128 equity shares, constituting 4.99% of its paid-up capital, within the stipulated timeline. The transaction, intended as a gift from promoter Mrs. Shashi Soni to her son Dinanath Soni, was rejected by the Depository Participant (DP) due to documentation issues.
Transfer Details and Rejection
The transfer was initiated under Regulation 10(5) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, claiming exemption for immediate relatives. The original intimation dated September 11, 2026, proposed completion by September 23, 2026. However, Anand Rathi Share and Stock Brokers Limited, acting as the DP for the transferor, rejected the instruction citing non-submission of documentary proof establishing the relationship between the donor and donee.
Despite submitting the Delivery Instruction Slip (DIS) with the reason code "Gift," along with the original Gift Deed, PAN, Aadhaar, and Passport copies, the DP refused to process the off-market transfer. The promoter group asserts that the delay is procedural and not attributable to any lapse in the underlying transaction or intent.
Shareholding Impact
The table below illustrates the proposed change in shareholding had the transfer been completed:
| Person | Pre-Transfer Shares | Pre-Transfer % | Post-Transfer Shares | Post-Transfer % |
|---|---|---|---|---|
| Dinanath Soni | Nil | NA | 7,48,128 | 4.99% |
| Mrs. Shashi Soni | 22,12,730 | 14.77% | 14,64,602 | 9.77% |
Next Steps and Regulatory Compliance
The promoter group stated they are collating requisite documents to resubmit to the current DP. If the rejection persists, they indicated a plan to complete the transfer through an alternative Depository Participant where the donor holds a demat account. This move aims to ensure compliance with Section 58(2) of the Companies Act, 2013, which safeguards free transferability of shares.
The company clarified that this communication serves as an intimation of the factual position and does not constitute a fresh application under Regulation 10(5). Once effected, the transfers will be reported to stock exchanges and SEBI as per applicable provisions.
Historical Stock Returns for IZMO
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.04% | -0.92% | +7.56% | +32.95% | -26.04% | +866.20% |
Will the promoter group's decision to switch Depository Participants trigger additional regulatory scrutiny regarding the validity of the gift deed documentation?
How might the delay in completing this intra-family transfer impact Izmo Limited's compliance status with SEBI's continuous disclosure norms?
Could the rejection of the initial transfer signal broader operational risks in Izmo's corporate governance or internal control frameworks?
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