TeamLease Services Limited has received a show cause notice from the Employees' Provident Fund Organisation (EPFO) over alleged fund management issues. The regulatory action involves substantial disputed financial implications that could significantly impact the company's operations and compliance standing.

Notice Details and Timeline

The EPFO issued the show cause notice on April 13, 2026, which TeamLease Services received on April 23, 2026. The company disclosed this information to stock exchanges on April 28, 2026, noting a delay of 5 days due to administrative exigencies and time required to assess the materiality threshold.

Specific Allegations

The show cause notice alleges several contraventions related to the administration and management of funds by the Employees' Provident Fund Trust. The EPFO has raised concerns about multiple areas of fund management practices.

Financial Impact and Company Response

The quantum of implication as per the notice amounts to ₹1,84,58,42,073 including interest, which the company disputes. TeamLease Services has clarified that it previously sought guidance from the Regional Provident Fund Organisation, Bengaluru, regarding employer funding obligations.

The company stated that the employer is allowed to fund only to the extent of shortfall as per the Balance Sheet, and such funding was completed on March 30, 2022. TeamLease Services is working closely with the department to resolve the demand and remains committed to ensuring full compliance with applicable laws and regulatory requirements.

Regulatory Compliance

As a prominent player in the human resources and staffing industry, TeamLease Services manages provident fund contributions for numerous employees across its client base. The company has indicated it is currently evaluating the notice and will take appropriate legal action while keeping stock exchanges informed of any material developments in this matter.

TeamLease Services Limited has submitted its quarterly compliance certificate to stock exchanges under SEBI regulations for the quarter ended March 31, 2026. The certificate, filed on April 14, 2026, demonstrates the company's adherence to dematerialization procedures as mandated by regulatory authorities.

Regulatory Compliance Details

The certificate was filed in compliance with Regulation 74(5) of the Securities and Exchange Board of India (SEBI) (Depositories and Participants) Regulations, 2018. This regulation requires companies to confirm proper handling of securities received for dematerialization during each quarter.

Key Confirmations Made

The company confirmed three critical aspects of its dematerialization process:

• Securities received from depository participants for dematerialization were properly confirmed and processed
• All securities included in the certificate are listed on stock exchanges where the company's previously issued securities are traded
• Share certificates received for dematerialization have been verified, mutilated, cancelled by depository participants, and the depository name has been substituted in the member register

Registrar and Transfer Agent Certificate

KFin Technologies Limited, serving as the company's Registrar and Share Transfer Agent, provided a supporting certificate dated April 13, 2026. The certificate was signed by Rajitha Cholleti, Vice President of KFin Technologies Limited.

KFin Technologies confirmed compliance with all required actions within 15 days of receiving share certificates from Depository Participants, including confirmation of dematerialization requests, verification of listing status, and proper cancellation procedures.

Company Secretary Certification

The filing was completed by Alaka Chanda, Company Secretary and Compliance Officer of TeamLease Services Limited. The certificate was digitally signed and submitted to both BSE Limited and National Stock Exchange of India Limited, ensuring comprehensive regulatory compliance across major stock exchanges.