K.M. Sugar Mills Reports Erroneous Transfer of 5,00,000 Equity Shares by Stockholding Corporation

2 min read Updated on 07 Jan 2026, 12:00 PM

Reviewed by

Suketu GScanX News Team

Overview

K.M. Sugar Mills Ltd. disclosed an erroneous transfer of 5,00,000 equity shares (0.54%) by Stockholding Corporation of India Limited to an incorrect demat account on December 11, 2025, without any authorization from promoters. The shares were mistakenly credited to Vatsal Jhunjhunwala's account instead of Jhunjhunwala Securities Private Limited's intended account during a demat account closure process. The company emphasized that no trading occurred and SCI is solely responsible for the error, with updates to follow once the mistake is rectified.

*this image is generated using AI for illustrative purposes only.

K.M. Sugar Mills Ltd. has informed stock exchanges about an erroneous transfer of equity shares by Stockholding Corporation of India Limited (SCI) that occurred without proper authorization. The company disclosed this incident under Regulation 30 of SEBI (LODR) Regulations, 2015, emphasizing transparency to prevent any misinterpretation.

Details of the Erroneous Transfer

On December 11, 2025, SCI erroneously transferred 5,00,000 equity shares representing 0.54% of K.M. Sugar Mills' equity to an incorrect demat account. The transfer occurred during the closure of demat account number IN30112715560862 held by Jhunjhunwala Securities Private Limited, a promoter group entity, with SCI.

Transfer Details:	Information
Shares Transferred:	5,00,000 equity shares
Percentage of Equity:	0.54%
Transfer Date:	December 11, 2025
Responsible Entity:	Stockholding Corporation of India Limited
Authorization Status:	No prior intimation or authorization

Account Details and Misallocation

The shares were incorrectly credited to Vatsal Jhunjhunwala's demat account instead of the intended recipient account. Both accounts are maintained with Anand Rathi Share and Stock Brokers Limited as the depository participant.

Incorrect Recipient Account

Account Parameter:	Details
Demat Account Number:	1201060003043740
Account Holder:	Vatsal Jhunjhunwala
PAN:	AGHPJ6163G
Depository Participant:	Anand Rathi Share and Stock Brokers Limited

Intended Recipient Account

Account Parameter:	Details
Demat Account Number:	1201060006716320
Account Holder:	Jhunjhunwala Securities Private Limited
PAN:	AAACJ9775C
Depository Participant:	Anand Rathi Share and Stock Brokers Limited

Company's Position and Clarifications

K.M. Sugar Mills emphasized that the transfer was executed by SCI suo motu, meaning on its own initiative, without any oral or written instructions from the promoters or promoter group. The company stated that SCI has confirmed its sole responsibility for this error and that the promoters reserve the right to hold SCI accountable.

The company clarified several important points regarding the incident:

No trading or acquisition of the equity shares has taken place
No disclosure is required under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
No disclosure is required under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015
The error arose solely due to SCI's inadvertent mistake

Next Steps and Updates

The company has committed to providing further updates as and when SCI rectifies the error. This disclosure was made in the interest of full transparency to prevent any misinterpretation of the share transfer. K.M. Sugar Mills has requested the stock exchanges to take this information on record and advise if any further action is required from the company's end.

The disclosure was signed by Ritika Tandon, Company Secretary and Compliance Officer, on behalf of K.M. Sugar Mills Limited, dated January 7, 2026.

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