SRM Contractors warned by SEBI for ₹131.45 Cr RPT prior approval lapse
SRM Contractors Ltd has received an Administrative Warning Letter from the Securities and Exchange Board of India (SEBI) dated April 23, 2026. The warning pertains to the company's non-compliance with Regulation 23(4) read with Regulation 23(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Specifically, the company failed to obtain prior shareholder approval for material related party transactions (RPTs) entered into during the financial year 2024-25. These transactions, with SRM-Rajinder Projects and SRM-RSB Projects (Joint Ventures), aggregated to ₹84.05 crore and ₹47.40 crore respectively, totaling ₹131.45 crore, exceeding the prescribed materiality threshold. Although the company subsequently obtained shareholder approval in the Annual General Meeting held on September 29, 2025, SEBI emphasized the requirement for *prior* approval. SEBI has advised the company to be more vigilant in ensuring compliance and to avoid recurrence, to which SRM Contractors has committed to strengthening its internal compliance mechanisms.
Key Highlights
- SEBI issued an administrative warning to SRM Contractors for regulatory non-compliance.
- Company failed to obtain prior shareholder approval for ₹131.45 Cr material RPTs in FY25.
- Transactions with SRM-Rajinder Projects and SRM-RSB Projects exceeded materiality thresholds.
- Subsequent shareholder ratification does not fulfill the prior approval requirement.
- SRM Contractors commits to strengthening internal compliance mechanisms.