Sharda Motor withholds ₹20 dividend for incomplete KYC
- Sharda Motor Industries withheld FY26 final dividend of ₹20 per share for non-KYC compliant shareholders
- Dividend payment is restricted to electronic mode only per SEBI Master Circular dated February 6, 2026
- Physical shareholders must submit Form ISR-1 and ISR-2 to the RTA to claim unpaid dividends
- Demat holders must update KYC details with their respective Depository Participants
*this image is generated using AI for illustrative purposes only.
Sharda Motor Industries has withheld the final dividend for FY26 from shareholders whose Know Your Customer (KYC) documents or bank account details are incomplete or incorrect. The company issued this intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Board approved a dividend of ₹20 per equity share, representing 1000% of the face value of ₹2 each, at the 41st Annual General Meeting held on September 24, 2026. The record date for eligibility was set as September 18, 2026. However, payments are restricted to electronic mode only, in compliance with SEBI Master Circular No. HO/38/13/(4)2026-MIRSDPOD/ I/4298/2026 dated February 6, 2026, and the SEBI Listing Regulations (Fifth Amendment) Regulations, 2025.
Reasons for dividend withholding
The company identified specific folios and demat accounts where dividends could not be processed electronically due to non-compliance with KYC norms or invalid bank details. Shareholders are required to update their records to receive the payout.
| Action Required | Applicable To | Submission Method |
|---|---|---|
| Submit Form ISR-1 and ISR-2 | Physical share holders | Hard copies to RTA or Company Secretary |
| Update KYC details | Demat account holders | Via respective Depository Participants (DPs) |
Remedial steps for shareholders
Shareholders holding shares in physical form must submit duly filled and signed Form ISR-1 and ISR-2 along with self-attested supporting documents. Those holding shares in dematerialized form must update their KYC details directly with their Depository Participants. Forms are available on the company’s investor relations website or the Registrar & Transfer Agent’s portal.
Completed forms for physical holders can be forwarded to Alankit Assignments Ltd at Jhandewalan Extension, New Delhi, or to the Company Secretary at the registered office in Okhla Industrial Area, New Delhi. Upon successful updation of KYC details, shareholders may submit a request to the RTA for the release of unpaid dividends through electronic mode.
Historical Stock Returns for Sharda Motor
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.83% | -8.22% | -14.56% | -4.93% | -21.49% | +159.01% |
How might the strict enforcement of KYC compliance impact the overall shareholder base composition for Sharda Motor Industries in the coming fiscal years?
What are the potential regulatory penalties or listing risks for Sharda Motor if a significant portion of dividends remains unclaimed due to persistent non-compliance?
Could the mandatory electronic-only dividend policy accelerate the migration of remaining physical shareholders to demat accounts across the broader Indian equity market?
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