MAS Financial Services Limited has allotted 36,000 senior, secured, rated, listed, redeemable, transferable, non-convertible debentures (NCDs) on a private placement basis. The debentures carry a face value of ₹1,00,000 each, aggregating to a nominal value of ₹360 crore. The allotment was made during a meeting of the company's Finance Committee held on May 20, 2026.

The issuance was made to Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the Dutch Entrepreneurial Development Bank. The debentures have been assigned a credit rating of "CARE AA-/Stable" by CARE Ratings Limited. These securities are proposed to be listed on the Wholesale Debt Market segment of BSE Limited.

Key Details of the Allotment

The debentures have a tenure of five years from the deemed date of allotment. The maturity date is set for May 20, 2031. The coupon rate is structured as an aggregate of the base rate, cost of funds spread, and margin, as detailed in the debenture trust deed. Interest payments will be made on a semi-annual basis.

Security and Redemption Structure

The company has created a first ranking exclusive charge by way of hypothecation over identified assets and receivables in favor of the debenture trustee. The value of these hypothecated assets will be maintained at least 1.1 times the outstanding amount of the debentures until full redemption. The principal amount will be redeemed in six instalments on a pari passu basis in accordance with the debenture trust deed. In the event of a delay in payment, the company will pay default interest of 2% per annum over the coupon rate on the unpaid amounts.

Fund Allocation

The funds raised through this issuance will be allocated towards women-owned or women-led SMEs, youth-owned or youth-led SMEs and/or Rural SMEs. This reflects the company's commitment to serve the underserved segments and contribute to financial inclusion.

MAS Financial Services has addressed a violation of the SEBI (Prohibition of Insider Trading) Regulations, 2015, involving a designated person within the organization. The company's Audit Committee convened on May 19, 2026, to review the matter concerning a contra trade executed by Ms. Bhavna Bhatt, the Treasury Head.

Audit Committee Findings

The committee examined the execution of a contra trade involving 30 equity shares of the company carried out on May 06, 2026. The company had previously reported this violation to the stock exchanges on May 07, 2026, in compliance with the prescribed XBRL format and relevant SEBI circulars.

During the meeting, the Audit Committee sought clarifications from Ms. Bhavna Bhatt regarding the transaction. After evaluating her explanations, the committee concluded that the trades were insignificant in value and were undertaken inadvertently. Crucially, the investigation confirmed that no profit or financial benefit was derived from the transaction.

Disciplinary Action and Compliance

Based on the recommendation of the Audit Committee, the company has issued a stern warning letter to Ms. Bhavna Bhatt. She has been cautioned against repeating any such violation of the Code of Conduct in the future.

To prevent recurrence, MAS Financial Services stated that it regularly conducts training sessions for designated persons regarding insider trading regulations. The company plans to implement more comprehensive and enhanced training and awareness programs to strengthen its compliance mechanisms moving forward.