Shriram Finance Limited promoter and promoter group entities have filed regulatory disclosures under SEBI takeover regulations regarding the creation of transfer restrictions on shares. The latest disclosure from Shriram Ownership Trust, dated April 17, 2026, pertains to contractual restrictions arising from a shareholders agreement executed with MUFG Bank Ltd on April 8, 2026.

Comprehensive Transfer Restrictions Framework

The transfer restrictions affect multiple promoter and promoter group entities holding a combined 47,76,30,880 shares, representing 20.30% of Shriram Finance's total share capital. These restrictions were created under a shareholders agreement between MUFG Bank Ltd., Shriram Capital Private Limited, Shriram Ownership Trust, Shriwell Trust, Sanlam Life Insurance Limited, Sanlam Emerging Markets (Mauritius) Limited, and Shriram Value Services Limited.

Entity-wise Holdings and Restriction Terms

The disclosures detail specific shareholdings and restriction terms for each affected entity:

Detailed Restriction Framework

For entities subject to three-year restrictions (Shriram Capital Private Limited, Shriram Value Services Limited, Shriram Ownership Trust, and Shriram General Insurance Company Limited), the terms include:

• Lock-in Period: No transfer of shares for 3 years from April 8, 2026, except for certain permitted transfers
• Post Lock-in Restrictions: After the lock-in period, no transfers to any 'Restricted Person' under the shareholders agreement
• Right of First Offer: Any share sale after the lock-in period (except permitted transfers) is subject to MUFG Bank Ltd.'s right of first offer

Sanlam entities (Sanlam Life Insurance Limited and Sanlam Emerging Markets (Mauritius) Limited) face a shorter one-year lock-in period from April 8, 2026, followed by restrictions on transfers to 'Restricted Persons' under the agreement.

Regulatory Filing Details

R Thyagarajan, Trustee of Shriram Ownership Trust, signed the latest disclosure documents on April 17, 2026. The filing was made to Shriram Finance Limited, National Stock Exchange of India Limited, and BSE Limited under Regulation 31(1) read with Regulation 31(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation, 2011.

Termination Provisions

The share transfer restrictions will cease to apply if MUFG Bank Ltd. and its affiliates' shareholding falls below 10% of Shriram Finance's share capital on a fully diluted basis. This provision provides a mechanism for restriction removal based on MUFG Bank's continued significant shareholding. MUFG Bank Ltd., incorporated under the laws of Japan with its registered office at 1-4-5, Marunouchi, Chiyoda-ku, Tokyo, Japan, is the beneficiary of these contractual arrangements.

Shriram Finance has received a significant regulatory milestone as the Reserve Bank of India (RBI) has granted in-principle approval to its subsidiary for starting primary dealer business operations. The approval was received on April 15, 2026, marking an important development in the company's expansion strategy within the financial services sector.

Regulatory Approval Details

The RBI's in-principle approval allows Shriram Overseas Investments Limited, a wholly owned subsidiary of Shriram Finance, to move forward with establishing its primary dealer operations. However, the approval comes with certain conditions that must be satisfied before the business can commence operations.

Primary Dealer Business Significance

Primary dealers play a crucial role in the government securities market by participating in auctions of government bonds and treasury bills. They serve as intermediaries between the RBI and other market participants, helping to ensure smooth functioning of the government securities market.

Regulatory Compliance

The company has informed both BSE Limited and National Stock Exchange of India Limited about this development under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This notification follows an earlier intimation dated March 12, 2026, indicating the ongoing regulatory process.

Next Steps

Shriram Overseas Investments Limited will need to fulfill the pending regulatory conditions specified by the RBI before it can begin its primary dealer business operations. This approval represents a strategic move for Shriram Finance to diversify its business operations and strengthen its presence in the financial services market through its subsidiary's expanded capabilities in government securities trading.