Shanthi Gears Limited , a prominent gear manufacturing company, has come under regulatory scrutiny for a delay in disclosing material information to the stock exchanges. The company received warning letters from both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on December 1, 2025, highlighting a breach of compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations.

Non-Compliance Details

The warning letters were issued in response to Shanthi Gears' delayed disclosure regarding their application for promoter reclassification. According to the exchanges, the company failed to adhere to Regulation 31A(8)(c) of the SEBI LODR, which mandates the disclosure of material events within 24 hours of occurrence.

Regulatory Stance

Both NSE and BSE have taken a serious view of this non-compliance. The exchanges have:

1. Issued warning letters to Shanthi Gears Limited
2. Advised the company to exercise due caution in the future
3. Urged the implementation of corrective measures to prevent recurrence

Company's Obligations

In light of the warnings, Shanthi Gears is required to:

1. Disseminate copies of the warning letters on the stock exchanges where it is listed
2. Present the warning letters to its Board of Directors
3. Inform the Board about corrective measures taken to avoid such lapses in the future

Implications

While this warning does not carry immediate penalties, it serves as a cautionary note for Shanthi Gears and other listed entities. Timely disclosure of material events is crucial for maintaining market transparency and protecting investor interests. Future non-compliance could potentially lead to more severe regulatory actions.

Investors and stakeholders of Shanthi Gears should take note of this development as it reflects on the company's regulatory compliance practices. The company's response to this warning and its future adherence to disclosure norms will be important factors to monitor.

As the regulatory environment continues to evolve, listed companies are increasingly expected to maintain stringent compliance with disclosure requirements. This incident underscores the importance of robust internal processes to ensure timely communication of material events to stock exchanges.

Shanthi Gears Limited , a prominent player in the industrial gear manufacturing sector, has received approval from both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for the reclassification of two entities from its promoter group category.

Key Points of the Approval

• Entities Involved: The approval pertains to two promoter group entities:

  1. Yanmar Coromandel Agrisolutions Private Limited
  2. Coromandel Engineering Company Limited

• Approval Date: The no-objection approvals were issued on December 1, 2025.

• Application Date: The company had applied for this reclassification on October 25, 2025.

• Regulatory Framework: The reclassification was sought under Regulation 31A of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.

Details of Shareholding

According to the LODR data provided by Shanthi Gears Limited, the shareholding status of the entities approved for reclassification is as follows:

Implications and Next Steps

With the approval from NSE and BSE, these entities will now exit the promoter group classification of Shanthi Gears Limited. This reclassification could potentially impact the company's shareholding structure and governance dynamics.

The approval marks the successful completion of the process initiated by Shanthi Gears to restructure its promoter category. This move aligns with the company's earlier disclosures regarding the re-classification of these promoter group members.

Investors and stakeholders of Shanthi Gears Limited should take note of this development and its potential implications on the company's ownership structure. The company may provide further updates or disclosures related to this reclassification in due course.