Kirloskar Brothers writes to exchanges, demands proper disclosures by 5 firms

Kirloskar Brothers Ltd. (KBL) led by Sanjay Kirloskar has written to BSE Ltd. and National Stock Exchange of India Ltd. (NSE) seeking regulatory action against the compliance officer and the board of directors of five companies led by brothers Atul and Rahul Kirloskar for allegedly making “misleading and factually incorrect” disclosures to investors and the stock exchanges.

These companies include GG Dandekar Properties Ltd, Kirloskar Ferrous Industries Ltd (KFIL), Kirloskar Pneumatic Company Ltd (KPCL), Kirloskar Industries Ltd (KIL) and Kirloskar Oil Engines Ltd (KOEL). 

In its letters dated October 3, 2025 and posted on its website, KBL has alleged these companies’ September 26, 2025 stock exchange filing pertaining to the 2009 Deed of Family Settlement (DFS) and a Bombay High Court order was “misleading and intentionally seeks to misrepresent the true and correct facts.” 

The company has claimed that the communication by the five companies was “selective and incomplete, potentially creating a distorted picture for shareholders.”

According to KBL, the five firms in their disclosures made selective reference to the Bombay High Court order dated September 23, 2025, while omitting crucial portions such as ‘keep the matter’s merits open’, ‘record that SEBI’s revised stance does not dilute its earlier orders’, and ‘acknowledge KBL’s objections to SEBI’s changed interpretation.’

KBL has contended that by omitting these key details, these companies had misled investors and regulators and suppressed material facts regarding SEBI’s position on disclosure requirements related to family settlements. 

The company emphasised that SEBI’s order dated December 30, 2024 had ‘unambiguously’ ruled that the DFS created indirect restrictions on companies even though they were not a direct signatory. 

According to KBL, SEBI’s order had clarified that disclosure of such family arrangements is mandatory “regardless of whether the listed entity is a party,” as the intent of Regulation 30A of the LODR Regulations is to ensure full transparency for investors.

The letters also highlight the potential seriousness of such lapses in light of SEBI’s repeated emphasis on accurate and complete disclosures to protect investor interests.