Oil Country Tubular faces SEBI notice over ICD disclosures

1 min read Updated on 04 Jun 2026, 12:19 AM

Reviewed by

Anirudha BScanX News Team

AI Summary

Oil Country Tubular received a show cause notice from SEBI on June 03, 2026, regarding alleged non-compliances with LODR Regulations, specifically concerning the non-disclosure of an ICD Agreement and Addendum Agreements, and the failure to obtain necessary shareholder and board approvals for these transactions.

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Oil Country Tubular received a show cause notice from the Securities and Exchange Board of India (SEBI) on June 03, 2026, concerning alleged non-compliances with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice, issued on June 02, 2026, under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995, initiates adjudication proceedings against the company. The regulator has appointed an Adjudicating Officer to inquire into the matter and adjudicate under Section 15HB of the SEBI Act, 1992.

The alleged violations relate to the company's handling of an Inter-Corporate Deposit (ICD) Agreement and subsequent Addendum Agreements. Specifically, the notice cites the non-disclosure of the ICD Agreement and Addendum Agreements under Regulation 30 of the LODR Regulations. Additionally, the company is accused of failing to obtain prior shareholder approval for the ICD Agreement and the First Addendum Agreement as material related party transactions under Regulation 23(4).

Further, the notice highlights a lack of requisite approvals for the Second Addendum Agreement. The company allegedly did not secure approvals from the Audit Committee, the Board, or shareholders for this agreement under Regulations 23(2), 23(4), and 4(1)(g) of the LODR Regulations. The initiation of these proceedings underscores regulatory scrutiny over corporate governance and disclosure norms.

The details of the show cause notice were disclosed to the stock exchanges pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI LODR Regulations. The company stated that the information is also available on its website.

Details of the Alleged Violations

Particulars	Details
Regulatory Authority	Securities and Exchange Board of India (SEBI), Office of the Chief General Manager & Adjudicating Officer
Nature of Action	Initiation of adjudication proceedings and appointment of Adjudicating Officer u/s 15-I of SEBI Act, 1992 and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995
Date of Receipt	June 03, 2026
Alleged Violations	(a) Non-disclosure of ICD Agreement and Addendum Agreements under Regulation 30 of LODR Regulations; (b) Non-obtaining of prior shareholder approval for ICD Agreement and First Addendum Agreement under Regulation 23(4); (c) Non-obtaining of Audit Committee, Board, and shareholder approvals for Second Addendum Agreement under Regulations 23(2), 23(4), and 4(1)(g) of LODR Regulations

Historical Stock Returns for Oil Country Tubular

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.29%	+0.80%	-11.32%	-18.71%	-24.20%	+653.38%

What is the potential financial penalty range that Oil Country Tubular faces if the Adjudicating Officer rules against them?

How will the ongoing adjudication proceedings impact the company's ability to secure future financing or inter-corporate deposits?

Will the company need to restate its financial statements to account for the improperly disclosed related party transactions?

Financial Performance

The company's standalone financial results revealed that revenue from operations for the year ended March 31, 2026, was ₹7,009.41 lakh, a decrease from ₹12,290.31 lakh in the prior year. For the quarter ended March 31, 2026, the company reported a net loss of ₹1,363.64 lakh on a total income of ₹3,041.09 lakh. The EBITDA for the year ended March 31, 2026, was reported at ₹630.32 lakh.

Particulars	Year Ended 31.03.2026 (₹ in Lakhs)	Year Ended 31.03.2025 (₹ in Lakhs)
Total Income	7,181.12	12,576.76
Total Expenses	13,616.66	15,486.83
Net Profit / (Loss)	(6,148.24)	(3,186.12)
Earnings Per Share (Basic)	(12.01)	(7.10)

Board Appointments and Changes

During its meeting held on May 21, 2026, the Board of Directors approved several key managerial appointments. Based on the recommendation of the Nomination and Remuneration Committee, the Board appointed Mr. Ramamuni Reddy Jampanapalle as the Chief Financial Officer (CFO) and Key Managerial Personnel of the company, effective May 21, 2026. Mr. Jampanapalle brings over 35 years of experience in accountancy, finance, and accounts management.

Additionally, the Board approved the change in designation of Mr. Paruchuri Dheeraj Chowdary from Non-Executive Non-Independent Director to Whole Time Director of the company. This appointment is for a period of three years, effective from June 01, 2026, to May 31, 2029, subject to the approval of the members in the ensuing Annual General Meeting. Mr. Chowdary is the son-in-law of Mr. Shashidhar Kamineni, Director of the company.

Auditor Update

The company informed the exchanges that its Statutory Auditors, C K S Associates, Chartered Accountants, have converted into a Limited Liability Partnership (LLP) and are now known as C K S Associates LLP, Chartered Accountants. The company confirmed that this conversion does not result in any change to the existing audit engagement or partners, and the firm will continue to discharge its obligations as Statutory Auditors for the remaining period of the tenure.

Historical Stock Returns for Oil Country Tubular

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.29%	+0.80%	-11.32%	-18.71%	-24.20%	+653.38%

What specific turnaround strategies will the newly appointed CFO and Whole Time Director implement to reverse the widening net losses and declining revenue trajectory at Oil Country Tubular Limited?

How might the significant revenue decline from ₹12,290 lakh to ₹7,009 lakh impact the company's ability to secure new orders or credit facilities in the near term?

Could the appointment of Mr. Paruchuri Dheeraj Chowdary, who has a familial connection to an existing director, raise corporate governance concerns among institutional investors or proxy advisory firms?