Cholamandalam Investment and Finance Company Limited has announced receipt of a formal reclassification request from Algavista Greentech Private Limited, seeking to change its classification from promoter group to public category shareholders under SEBI regulations.

Reclassification Request Details

On December 18, 2025, the company received a request letter from Algavista Greentech Private Limited (AGPL) seeking reclassification from the promoter/promoter group category under Regulation 31A of the SEBI Listing Regulations. The request follows E.I.D. Parry (India) Limited's complete divestment of its entire stake in AGPL.

Background and Rationale

The reclassification request stems from E.I.D. Parry (India) Limited's sale of its entire 50% stake in AGPL to Synthite Industries Private Limited, its joint venture partner. Following this divestment, AGPL no longer falls under the definition of promoter group as specified in Regulation 2(pp) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

AGPL had been a subsidiary of E.I.D. Parry (India) Limited, one of the promoters of Cholamandalam Investment. With the change in ownership structure, AGPL has requested removal of its name from the company's promoter group list.

Regulatory Compliance Confirmations

AGPL has provided comprehensive confirmations as required under Regulation 31A(3)(b) of the Listing Regulations, stating that neither the entity nor any related persons:

• Hold more than 10% of total voting rights in the company
• Exercise control over company affairs directly or indirectly
• Have special rights through formal or informal arrangements
• Are represented on the board of directors
• Act as key managerial personnel
• Are classified as willful defaulters or fugitive economic offenders
• Act in concert with the promoter/promoter group

Next Steps and Approvals

The request letter will be placed before the Board of Directors as required under Regulation 31A(3) of the SEBI Listing Regulations at its next meeting. Following board approval, the company will seek requisite approvals from the National Stock Exchange of India Limited and BSE Limited to complete the reclassification process.

AGPL has undertaken to comply with all requirements specified in Regulation 31A(4) of the Listing Regulations and provide necessary information to facilitate the reclassification process.

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.