Munoth Financial Services Limited disclosed the outcome of its Board Meeting held on September 11, 2026, regarding the proposed transfer of its Depository Participant (DP) business operations.
The Board of Directors granted in-principle approval for the transfer and migration of the Company's DP business operations and client accounts. The meeting commenced at 2:00 PM and concluded at 3:20 PM on September 11, 2026.
The reason for the proposed transfer is that the revenue generated by the DP business operations is not substantial relative to the total scale of the Company's business operations. The Board determined it is no longer commercially viable to maintain standalone operations for this segment and decided to focus on core business activities.
Financial Impact Details
- The DP business unit contributed revenue of ₹317.26 (in thousands) during the last financial year
- This represents 7.67% of the total revenue from operations of ₹4,138.42 (in thousands) for the financial year
Transaction Structure and Process
The Company is currently in the process of identifying and evaluating an eligible registered Depository Participant (Transferee) to handle the business migration/transfer. The proposed transaction will be subject to:
- Finalization of terms
- Execution of definitive migration agreements
- Necessary statutory approvals from National Securities Depository Limited (NSDL)
- Approvals from Securities and Exchange Board of India (SEBI)
- Approvals from other applicable authorities
Regulatory Considerations
The transaction does not constitute the sale or disposal of an "undertaking" under Section 180(1)(a) of the Companies Act, 2013 or Regulation 37A of SEBI (LODR) Regulations, 2015, and therefore does not require shareholder approval.
Current Status and Timeline
- No agreement for transfer has been entered into at this stage
- Expected date of completion is dependent on regulatory approvals from NSDL, SEBI and other regulatory authorities
- Consideration to be received is not determinable at this stage
- Details of the Transferee and whether they belong to promoter/promoter group/group companies are not determinable
- Whether the transaction would fall within related party transactions and if done at "arm's length" is not determinable
The disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.
The Company will make further updates to the Stock Exchange as soon as the transfer is finalized and definitive terms are executed.