Shervani industrial syndicate Limited has filed a disclosure with BSE Limited confirming that the SEBI circular on debt securities issuance by large entities does not apply to the company. The communication, dated April 15, 2026, addresses the regulatory requirements under SEBI Circular No. SEBI/HO/DDHS/DDHS-POD1/P/CIR/2023/172.

Regulatory Compliance Status

The company has provided a detailed assessment of its position regarding the SEBI circular requirements. As of March 31, 2026, the company's compliance status shows a mixed picture across different criteria.

SEBI Circular Background

The referenced SEBI circular, issued on October 19, 2023, pertains to fund raising through issuance of debt securities by large entities. The circular establishes specific criteria that companies must meet for the regulations to become applicable, including borrowing thresholds and credit rating requirements.

Company Communication

The disclosure was signed by Company Secretary Shrawan Kumar Shukla and submitted to the General Manager-Listing Department of Corporate Services at BSE Limited. The company has requested BSE to take this information on record for regulatory compliance purposes.

Implications

Since the company does not meet all the specified criteria under the SEBI circular, particularly the borrowing threshold of Rs. 1000 crores and credit rating conditions, the debt securities issuance framework does not apply to Shervani Industrial Syndicate Limited at this time.

Shervani Industrial Syndicate Limited has disclosed receiving a significant GST demand order from tax authorities, marking a regulatory development that the company intends to challenge through the appellate process.

Order Details and Demand Amount

The company received Order Ref. No. ZD0903261671574 dated March 24, 2026, from the Assistant Commissioner, CGST & Central Excise Division-II, Allahabad. The order follows Show Cause Notice No. 167/AE/AC/2025-26 dated August 28, 2025.

Nature of Violation

The GST demand relates to non-payment of GST under reverse charge mechanism on the purchase of FAR (Floor Area Ratio) from the Prayagraj Development Authority. The violation covers multiple financial years spanning from 2019-20 to 2022-23.

The demand includes interest charges along with equivalent penalty under Section 74 and Section 50 of the CGST Act, 2017, read with corresponding provisions of the U.P. GST Act, 2017.

Company's Response and Impact Assessment

Shervani Industrial Syndicate has expressed its intention to challenge the order through the appellate process. The company stated it is aggrieved with the order and has decided to file an appeal against the demand within the timeline prescribed under the Act.

The company has maintained that there is no impact of the demand on its financial operations and other activities, suggesting confidence in its position for the upcoming appeal proceedings.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with various SEBI circulars including the Master Circular dated November 11, 2024, and subsequent regulatory guidelines. Company Secretary Shkawan Kumar Shukla signed the disclosure, confirming the information provided is true, correct and complete to the best of his knowledge and belief.