Kirloskar Bros discloses family settlement deed

economictimes.indiatimes.com:

Kirloskar Brothers is the first company to disclose its promoters' entire 'deed for family settlement' (DFS)- an agreement between the family members regarding the distribution of assets and properties — as per the Securities and Exchange Board of India's new disclosure requirements. In an exchange filing, the company disclosed the DFS dated September 11, 2009, signed by Atul, Rahul, Sanjay, Gautam, and Vikram Kirloskar.

The agreement includes the change in ownership of various group entities, transfer of shares, and execution of the deed, among other aspects. Last month, Sebi made it mandatory for promoters of all listed companies to disclose to the stock exchanges all their active family settlement agreements or arrangements that have a bearing or influence on management control of the company.Jagran Prakashan also disclosed some details of the agreement signed between the promoters at Jagran Media Network Investment (JMNIPL) dated July 21, 2011.

JMNIPL has a 67.97% stake in listed Jagran Prakashan. The deadline for the listed companies to disclose all subsisting agreements to the stock exchanges is August 14, 2023.

Lawyers said the disclosure requirements are aimed at improving transparency mainly in family-run businesses as various deals involving promoters could have a bearing on the listed entities. «Disclosure of family settlements under LODR requirements will go a long way to ensure transparency in listed entities,» said Siddharth Mody, partner at J Sagar Associates (JSA).