Shriram Finance Ltd. executed a significant block trade on the National Stock Exchange (NSE), marking a notable institutional transaction in the financial services sector.

Transaction Details

The block trade involved substantial volumes and value, reflecting significant institutional activity in the company's shares.

Market Implications

Block trades typically represent large-volume transactions executed by institutional investors, mutual funds, or other significant market participants. These transactions are often conducted outside regular trading hours or through special mechanisms to minimize market impact. The execution price of Rs. 1008.90 per share provides insight into the institutional valuation of the company's equity at the time of the transaction.

Such block deals are closely monitored by market participants as they can indicate institutional sentiment and potential shifts in major shareholding patterns. The substantial value of Rs. 30.31 crores underscores the significance of this particular transaction in the context of institutional trading activity.

Shriram Finance Limited has received a penalty order of Rs 46,91,115 from the Commercial Tax Officer, Chennai South, Tamil Nadu, for the financial year 2022-2023. The company disclosed this development through a regulatory filing dated February 1, 2026, pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Penalty Details and Legal Framework

The penalty order, dated January 31, 2026, has been imposed under Section 74 of the Central Goods and Service Tax Act, 2017, read with the Tamil Nadu Goods and Service Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017. The penalty relates to operations of erstwhile Shriram City Union Finance Limited, which was amalgamated with Shriram Finance Limited effective April 1, 2022.

Nature of Violations

The demand for FY 2022-23 has arisen due to specific GST-related issues:

• Disallowance of input tax credit taken on payment of Reverse Charge Mechanism (RCM)
• Issues related to credit note issued

The total tax demand amounts to Rs 46,91,115, with an equivalent penalty of Rs 46,91,115 being levied by the tax authority.

Company's Response and Impact Assessment

Shriram Finance Limited has stated that there is no material impact on the financial, operational, or other activities of the company. However, considering the quantum of the amount involved and out of commercial prudence, the company is awaiting an opinion from its tax consultant regarding the Tamil Nadu state demand orders with reference number ZD330126226973F dated January 31, 2026.

Regulatory Compliance

The disclosure has been made in accordance with sub-para 20(b) of Para A of Part A of Schedule III to Regulation 30 of the Listing Regulations, read with SEBI Master Circular No.: HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company has fulfilled its obligation to inform both BSE Limited and National Stock Exchange of India Limited about this development.

The penalty order represents a regulatory matter stemming from the company's amalgamation activities and highlights the ongoing compliance requirements in the GST framework for financial services companies.