News ArticleSamvardhana Motherson International Limited Pays ₹35.93 Lakh Compounding Fee to RBI for Foreign Exchange Compliance Issue
Order received on October 27, 2026 relates to delayed registration of bonus shares allotted in 2007 to non-resident shareholders with no material impact on company operations
Samvardhana Motherson International Limited has paid a compounding fee of ₹35,93,334 following RBI's compounding order related to delayed bonus share registration for non-resident shareholders in 2007. The matter pertains to Foreign Exchange Management Act compliance and has no material financial or operational impact on the company.
Samvardhana Motherson International Limited
Legal / Regulatory
Samvardhana Motherson International Limited disclosed the receipt of a compounding order from the Reserve Bank of India involving the payment of ₹35,93,334 in relation to a foreign exchange compliance matter concerning bonus shares issued in 2007.
The Reserve Bank of India (RBI), through its Foreign Exchange Department in Mumbai, issued the compounding order following the company's suo-motto application to regularize the contravention.
The violation involved the non-submission and non-registration of bonus shares allotted on September 10, 2007, to non-resident or foreign shareholders, in breach of provisions under the Foreign Exchange Management Act, 1999.
Samvardhana Motherson International Limited has paid the compounding fee as directed by RBI and confirmed that the matter does not have any material impact on its financials, operations, or other activities.
The disclosure was made on October 27, 2026, in compliance with SEBI Listing Regulations, reflecting no delay in disclosure and clarifying no further explanations were necessary.
Highlights
- Compounding fee paid: ₹35,93,334
- Violation related to bonus shares allotted on September 10, 2007
- RBI Foreign Exchange Department issued the order
- No material impact on financials or operations
- Disclosure date: October 27, 2026
Key Data Snapshot
What happened
- The Reserve Bank of India issued a compounding order to Samvardhana Motherson International Limited for a foreign exchange contravention.
- The company submitted a suo-motto application to regularize its non-compliance.
- The compounding fee of ₹35,93,334 was paid as per the order.
Key details
- The contravention involved the non-submission and registration of bonus shares allotted on September 10, 2007, to non-resident or foreign shareholders.
- The matter relates to compliance with the Foreign Exchange Management Act, 1999 and related regulations.
- The compounding order and fee payment occurred in 2026, almost 19 years after the allotment date.
Regulatory and governance context
- Disclosure was made under Regulation 30 of SEBI Listing Regulations.
- No delay in disclosures was reported.
- The company stated there is no material financial, operational or other impact due to this order.
Highlights
- Compounding fee paid: ₹35,93,334
- Violation related to bonus shares allotted on September 10, 2007
- RBI Foreign Exchange Department issued the order
- No material impact on financials or operations
- Disclosure date: October 27, 2026
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Foreign Exchange Management Act, 1999
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