Regency Fincorp Limited , a financial services company, has received shareholder approval for significant changes to its business operations and corporate structure through a postal ballot process. The company has taken steps to diversify its business activities and update its governance framework.

Expansion into Digital Payment Solutions

Shareholders have approved a modification to the company's Memorandum of Association, allowing Regency Fincorp to expand its business activities into the digital payment sector. This strategic move positions the company to offer a wide range of digital payment solutions, including:

• Prepaid Payment Instruments (PPIs)
• Electronic wallets
• Prepaid cards
• UPI and QR-based payments
• Payment aggregation services
• Merchant payment gateways
• Online money transfers
• Bill payments and recharges

This expansion is aimed at enhancing the company's business operations and tapping into the growing digital payments market in India.

Corporate Governance Updates

In addition to the business expansion, shareholders have approved two other significant changes:

1. Adoption of New Articles of Association: The company will adopt a new set of Articles of Association to align with the provisions of the Companies Act, 2013. This update replaces the previous framework based on the Companies Act, 1956, ensuring compliance with current regulatory requirements.

2. Revision of Loan Agreements: Shareholders have approved revisions to loan agreements with various entities. While specific details of these revisions were not disclosed, this approval suggests potential changes in the company's financial arrangements.

Voting Results

The postal ballot saw strong shareholder participation. Here's a breakdown of the voting results:

These results indicate overwhelming support for all three resolutions, with each receiving over 99% approval from voting shareholders.

Management's Perspective

Gaurav Kumar, Managing Director of Regency Fincorp Limited, signed off on these changes, which were initially recommended by the Board of Directors. The management views these updates as crucial for enhancing business operations and ensuring regulatory compliance.

The expansion into digital payment solutions, in particular, represents a significant pivot for Regency Fincorp, potentially opening up new revenue streams and market opportunities in the rapidly evolving fintech sector.

As Regency Fincorp Limited implements these changes, stakeholders will be watching closely to see how the company leverages its new capabilities in the digital payments space and how the updated corporate governance structure impacts its operations and financial performance.

Regency Fincorp Limited has announced a series of strategic moves aimed at expanding its business scope and restructuring its financial agreements. The company has issued a postal ballot notice seeking shareholder approval for three special resolutions that could significantly impact its future operations and financial structure.

Expansion into Digital Payments

The first resolution proposes to modify Regency Fincorp's Memorandum of Association to include Prepaid Payment Instruments (PPIs) business. This expansion would allow the company to develop and operate digital payment solutions, including:

• Electronic wallets
• Prepaid cards
• UPI and QR-based payments
• Payment aggregation services
• Merchant payment gateways

This move signals Regency Fincorp's intention to diversify its portfolio beyond traditional finance and investment activities, potentially tapping into the rapidly growing digital payments market in India.

Modernization of Articles of Association

The second resolution seeks to adopt a new set of Articles of Association compliant with the Companies Act 2013. This update aims to align the company's governing document with current regulatory requirements, replacing the existing version based on the Companies Act 1956. This change reflects Regency Fincorp's commitment to maintaining up-to-date corporate governance practices.

Loan Agreement Revisions

In a significant financial restructuring move, the third resolution proposes revisions to loan agreements with three entities:

The proposed revisions would include terms for potential conversion of these loans into equity shares of Regency Fincorp. This move could potentially impact the company's capital structure and ownership in the future.

Voting Process

Shareholders will have the opportunity to vote on these resolutions through an e-voting process, which will run from September 20 to October 19, 2025. The company has engaged the National Securities Depository Limited (NSDL) to provide the e-voting facility, ensuring a secure and accessible voting process for all eligible shareholders.

Management Commentary

Gaurav Kumar, Managing Director of Regency Fincorp Limited, stated in the postal ballot notice, "These proposed changes are aimed at positioning Regency Fincorp for future growth opportunities, particularly in the digital payments sector, while also ensuring our governance structures are in line with the latest regulatory requirements."

The outcomes of these resolutions could mark a significant turning point for Regency Fincorp, potentially broadening its business scope and altering its financial structure. Shareholders and market observers will be keenly watching the results of this postal ballot, as it could have far-reaching implications for the company's future direction and performance in the evolving financial services landscape.