Muthoot Finance Limited has issued detailed Tax Deduction at Source (TDS) guidelines to shareholders following the Board's declaration of Rs. 30 per equity share interim dividend for financial year 2025-26 on April 10, 2026. The company published newspaper advertisements on April 22, 2026, under Regulation 47 of SEBI Listing Regulations to communicate the tax implications to shareholders.

Dividend Payment Structure

The interim dividend will be paid to shareholders based on beneficial ownership records as of the record date, Friday, April 17, 2026. Company Secretary Rajesh A Warrier formally communicated the TDS provisions to stock exchanges including National Stock Exchange, BSE Limited, and NSE IFSC Limited under reference number SEC/MFL/SE/2026/6570.

TDS Framework Under Income Tax Act 2025

With the Income-tax Act, 2025 coming into force from April 1, 2026, Muthoot Finance has outlined comprehensive withholding tax provisions for different shareholder categories. The company emphasizes that TDS rates vary based on residential status and documentation submitted by shareholders.

Resident Shareholders TDS Structure

Non-Resident Shareholder Provisions

Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, face a standard TDS rate of 20% plus applicable surcharge and cess. However, beneficial tax treaty rates may apply upon submission of complete documentation including Tax Residency Certificate for FY 2026-27, Form 41, and comprehensive self-declaration covering beneficial ownership and absence of Permanent Establishment in India.

Documentation Requirements and Compliance

KYC Compliance for Physical Folios

As per SEBI Master Circular SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 7, 2024, dividend payments will be withheld for non-KYC compliant physical folios. Mandatory requirements include PAN details, specimen signature, choice of nomination, contact details with PIN and mobile number, bank account information with electronic payment capability, and updated postal address.

Important Guidelines and Disclaimers

The company will provide TDS certificates via email to registered addresses and shareholders can verify TDS credits through Form 168 on the Income Tax e-filing portal. Muthoot Finance clarifies that it bears no responsibility for taxes deducted due to incomplete or incorrect documentation, and shareholders may claim refunds through their income tax returns if eligible. The communication serves as a summary of tax provisions, and shareholders are advised to consult tax professionals for personalized guidance regarding their specific circumstances.

Muthoot Finance Limited has announced a postal ballot notice seeking shareholder approval to expand its business operations into insurance distribution services. The company issued the notice on April 10, 2026, proposing amendments to its Memorandum of Association to facilitate entry into the insurance sector as a corporate agent and intermediary for all types of insurance.

Newspaper Advertisement Confirmation

On April 17, 2026, Muthoot Finance published newspaper advertisements in 'Business Line' and 'Metro Vaartha' confirming the dispatch of the postal ballot notice. The company filed this information with stock exchanges under Regulation 30, maintaining transparency with stakeholders about the ongoing postal ballot process.

E-Voting Schedule and Process

The electronic voting process for the postal ballot has been structured with specific timelines for shareholder participation:

The company is conducting the postal ballot exclusively through electronic voting in compliance with MCA Circulars and SEBI regulations. Physical ballot forms are not being distributed to shareholders.

Proposed Business Expansion

The special resolution seeks to insert a new object clause in the company's Memorandum of Association to enable insurance distribution activities. The proposed amendment would allow Muthoot Finance to:

The Board of Directors approved this proposal at their meeting held on April 10, 2026, subject to shareholder approval and necessary regulatory permissions from IRDAI and Reserve Bank of India.

Strategic Rationale

According to the company's statement, this business diversification aligns with several strategic objectives. The insurance distribution business will complement the company's existing financial services portfolio while creating new revenue streams expected to contribute to overall financial stability. The expansion will provide additional value propositions to existing clientele and strengthen the company's standing in the financial services sector. The company emphasized that insurance distribution will be conducted as an ancillary activity without affecting its principal NBFC business criteria.

Regulatory Compliance Framework

The proposed insurance business expansion will operate under a comprehensive regulatory framework:

The company has confirmed that all activities will be conducted in strict compliance with applicable laws and guidelines issued by relevant regulatory authorities. Shareholders can participate in the e-voting process through multiple channels including CDSL/NSDL depository systems and the dedicated e-voting platform at www.evotingindia.com .