Cummins India has announced the withholding of its Final Dividend for FY 2025-26 for shareholders who have not updated their Know Your Customer (KYC) details, including bank account information. This action is in compliance with SEBI regulations and aims to ensure secure and accurate dividend distribution. Shareholders affected will receive their dividends only after successful KYC updation. The company has communicated this to the concerned shareholders directly.
Dividend Withholding for KYC Non-Compliance
Cummins India Limited has issued an important intimation regarding the withholding of its Final Dividend for the Financial Year 2025-26. This measure is specifically for shareholders whose KYC (Know Your Customer) details, including crucial bank account information, remain un-updated in their respective folios.
Regulatory Basis for Action
The decision is made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and a Master Circular issued by SEBI on May 07, 2024. Amendments to the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2025, further mandate the requirement for updated KYC details for all dividend payments.
Communication to Shareholders
The company has undertaken a communication drive, sending individual notices to shareholders with non-compliant folios. These communications inform them about their KYC status and request them to update their details promptly. Shareholders holding physical shares are advised to submit the necessary forms to the Company’s Registrar and Share Transfer Agent (RTA), while those with dematerialized shares should update their DP (Depository Participants).
Dividend Details and Process
The Final Dividend declared by the Members of the Company was Rs. 46/- per equity share of face value Rs. 2/- each for FY 2025-26. However, for folios that are not KYC compliant or where dividend processing failed due to incorrect/incomplete bank account details with the RTA/Depositories, the dividend payment will be withheld. The dividend amount will only be released upon successful updation of KYC details, including valid bank account information, against the respective folio.
How to Update KYC and Claim Dividend
Shareholders with physical shares must submit duly filled and signed Form ISR-1 and ISR-2 along with supporting documents to MUFG Intime India Private Limited (formerly Link Intime India Private Limited) at their Mumbai office. For shareholders holding shares in dematerialized form, KYC details need to be updated with their respective Depository Participants (DPs).
KYC forms can be downloaded from https://web.in.mpms.mufg.com/KYC-downloads.html. Upon successful KYC updation, shareholders can submit a request to the RTA to release the unpaid dividend through electronic mode.
Source: BSE
