Archive · 26 Jun 2025
Kirloskar Group Companies Challenge Sebi Rules in Court
Some companies in the Kirloskar group are fighting with the Securities and Exchange Board of India (Sebi) in court.
Sebi wants them to share information about some private family agreements.
The companies say Sebi's rules are unfair because they force them to share information about deals they weren't directly involved in.
They believe Sebi is overstepping its bounds.
This all started because of a fight within the Kirloskar family over how their company is run.
The court will now decide if Sebi can make these companies share this information, which could change how other companies share information too.
Five Kirloskar Group companies are challenging the constitutionality of Sebi's disclosure rules in Bombay High Court.
The companies argue the rules mandate disclosure of private agreements, even if they aren't direct parties.
They claim the rules are arbitrary, disproportionate, and retrospectively applied, overstepping Sebi's mandate.
The legal action stems from an ongoing family dispute over a 2009 'Deed of Family Settlement'.
Sebi is seeking the court's response, with implications for corporate disclosures and family-led companies.
- Who
- Kirloskar Oil Engines Ltd, Kirloskar Ferrous Industries Ltd, Kirloskar Pneumatic Company Ltd, Kirloskar Industries Ltd, GG Dandekar Properties Ltd.
- What
- Five Kirloskar Group companies are challenging Sebi's disclosure rules in court.
- When
- The Bombay High Court is expected to hear the matter on August 20.
- Where
- Bombay High Court.
- Why
- The companies believe the rules are unconstitutional and overstep Sebi's mandate.
Kirloskar Group Companies' Arguments
Sebi & Kirloskar Brothers Ltd
Validity of Disclosure Rules
Kirloskar Group Companies' Arguments
Sebi's rules are 'manifestly arbitrary', 'disproportionate', and 'impermissibly retrospective'.
Sebi & Kirloskar Brothers Ltd
Courts have repeatedly affirmed Sebi’s wide rule-making power over listed companies.
Compliance with Regulations
Kirloskar Group Companies' Arguments
Sebi's disclosure rules violated well-established principles of company law and contract law.
Sebi & Kirloskar Brothers Ltd
Other companies have already complied with Sebi’s disclosure requirements without challenging the regulation’s legality.
- Companies Involved
- Kirloskar Oil Engines Ltd, Kirloskar Ferrous Industries Ltd, Kirloskar Pneumatic Company Ltd, Kirloskar Industries Ltd, GG Dandekar Properties Ltd.
- Legal Challenge
- Constitutional validity of Sebi's disclosure rules
- Court
- Bombay High Court
- Sebi Regulations Challenged
- Regulation 30A, Clause 5A, Regulation 30(13), and Sebi circulars
- Underlying Dispute
- Kirloskar family feud over a 2009 'Deed of Family Settlement'