Hero MotoCorp issued a disclosure regarding dividend payments that could not be remitted electronically to certain shareholders. This failure was due to the banking system rejecting the transaction based on outdated or incorrect account details held by the Registrar and Transfer Agent (RTA). The company confirmed that all future payments must be electronic, requiring affected members to update their bank information immediately with their DP or the RTA to receive their withheld dividend.
Dividend Remittance Failure Notification
Hero MotoCorp Limited has formally informed stock exchanges regarding a compliance disclosure related to dividend distribution. The filing pertains to instances where the dividend payment intended for shareholders was withheld. The core reason for this withholding was the electronic transaction being rejected by the banking system due to invalid or incorrect bank details associated with the shareholder’s account.
Mandatory Electronic Payment Mode
This situation arises following amendments effective from November 19, 2025, which mandate that all dividend payments must be remitted compulsorily through electronic mode only. The previous provisions allowing for payments via ‘payable-at-par’ warrants or cheques have been discontinued.
Shareholder Action Required
The dividend payable against the affected shareholdings, based on the record date of February 11, 2026, is currently being withheld. Shareholders are strongly requested to take immediate action to rectify this:
- Shareholders holding shares in dematerialised form must update their valid bank account details with their respective Depository Participant (DP).
- Shareholders holding shares in physical form must update their details directly with the Company’s Registrar and Transfer Agent (RTA).
The RTA handling this process is KFin Technologies Limited, located in Hyderabad. Once the details are updated and confirmation is sent to the RTA, the aforesaid dividend will be released electronically.
Physical Shareholding Advisory
The communication also advises members holding physical shares to consider converting their holding to dematerialized form to mitigate risks associated with physical certificates and ensure easier transaction processing.
Source: BSE
