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SEBI Warns Manappuram Finance CMD Over Delayed Share Pledge Disclosure

SEBI issued an administrative warning to Manappuram Finance CMD V.P. Nandakumar for a seven-day delay in disclosing share pledge transactions from September 2018. The warning was issued in his personal capacity and does not impact the company financially or operationally. Earlier this month, the company reported an insider trading violation involving independent director Abhijit Sen. Manappuram Finance shares have declined about 8% this year, with Q3FY26 profit falling 14%.

Key Points: SEBI Warns Manappuram Finance CMD Over Share Pledge Delay

  • SEBI warns Manappuram Finance CMD V.P. Nandakumar over delayed share pledge disclosure
  • Delay of seven days in disclosing pledge transactions from September 2018
  • Warning issued in personal capacity, no penalty or restriction imposed
  • Company also reported insider trading violation by independent director Abhijit Sen
2 min read

SEBI warns Manappuram Finance CMD over delayed shares pledge disclosure

SEBI issues administrative warning to Manappuram Finance CMD V.P. Nandakumar for delayed disclosure of share pledge transactions in 2018.

"The communication has been issued to Nandakumar in his personal capacity and does not have any financial, operational or other impact on Manappuram Finance Ltd. - Manappuram Finance Regulatory Filing"

New Delhi, April 25

The Securities and Exchange Board of India has issued an administrative warning to Manappuram Finance Ltd Chairman and Managing Director, V.P. Nandakumar, for delayed disclosure of share pledge transactions, the company said in a regulatory filing on Saturday.

The warning was issued via a letter dated April 24 related to a delay in disclosure of pledge of shares by the NBFC's CMD in his personal capacity for transactions carried out between September 21 and September 24, 2018.

According to the disclosure, the required intimation was made on October 11, 2018, reflecting a delay of seven days.

The company clarified that the communication has been issued to Nandakumar in his personal capacity and does not have any financial, operational or other impact on Manappuram Finance Ltd.

"No penalty or restriction has been imposed pursuant to the communication," the filing noted.

Earlier this month, the company said it had reported a violation of its code of conduct under insider trading rules, involving a transaction carried out through the portfolio management services (PMS) account of one of its independent directors.

The company said the trade was linked to Abhijit Sen, an Independent and Non-Executive Director, who also serves as Chairman of the Audit Committee.

Shares of Manappuram Finance ended about 1 per cent lower at Rs 289.65 apiece on the NSE on Friday. The stock has declined around 8 per cent so far this year. It has touched a 52-week high of Rs 321 and a low of Rs 222.51.

The company reported a consolidated profit after tax (PAT) of Rs 239 crore in Q3FY26, a 14 per cent decline from the corresponding period in the previous year.

Net interest income (NII) fell 18.36 per cent year-on-year to Rs 1,298.9 crore, while consolidated revenue from operations stood at Rs 2,353 crore, down 8 per cent.

Meanwhile, consolidated assets under management (AUM) rose 18.1 per cent to Rs 522 billion during the quarter.

- IANS

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Reader Comments

P
Priya S
Seven days is not huge, but when you're in the top seat, transparency is key. Manappuram Finance has been a solid gold loan player, but such warnings can hurt sentiment. Let’s hope this is just a one-off mistake.
J
James A
This seems minor—just a warning, no penalty. But the trend of compliance lapses at Manappuram (including that independent director’s PMS account issue) is concerning. I’d watch the stock closely. 📉
A
Ananya R
SEBI is getting really proactive—good for the market. But I feel for the retail investors who see stock dropping 8% this year. AUM growing 18% is great, but profit declining 14% is a red flag. Need better management focus.
S
Sarah B
With net interest income down 18% and profit dropping, this warning from SEBI is just the cherry on top. Manappuram needs to reassure shareholders—or risk losing more confidence.

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