Hero MotoCorp has issued a notification regarding the withholding of its final dividend for FY 2025-26 for certain shareholders. This action is a consequence of amendments to SEBI regulations requiring electronic dividend payments, and the identified shareholders have incomplete or incorrect bank details on record. The company advises affected shareholders to update their bank information with their Depository Participant to receive the withheld payment.
Dividend Payment Update for FY 2025-26
Hero MotoCorp Limited is informing its shareholders about the withholding of the final dividend for the financial year 2025-26. This measure is being implemented in compliance with recent amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These regulations, effective from November 19, 2025, mandate that all dividend payments must be processed exclusively through electronic modes, discontinuing the use of ‘payable-at-par’ warrants or cheques.
Reason for Withholding
Upon reviewing its records, the company’s Registrar and Share Transfer Agent (RTA) identified that a segment of shareholders have incomplete or missing bank account details. Consequently, the dividend payable to these shareholders against their holdings for FY 2025-26 has been withheld. The company has also indicated that for some shareholders, the dividend payment was rejected by the banking system due to incorrect bank details or unsuccessful KYC updation, as per SEBI circulars dated March 16, 2023, and subsequent master circulars.
Action Required by Shareholders
Shareholders whose dividend has been withheld are urged to immediately update their valid bank account details, including IFSC and MICR codes, with their respective Depository Participant (for dematerialized shares) or the Company’s RTA (for physical shares). Affected shareholders need to contact KFin Technologies Limited, the RTA, at their Hyderabad office or via email at [email protected] after updating their details. The dividend will be released in electronic mode once the updated information is confirmed.
KYC Updation for Physical Holdings
For shareholders holding shares in physical form, the company also highlighted the necessity of KYC updation as mandated by SEBI circulars. Failure to submit required KYC details such as PAN, contact information, bank account details, and signature can lead to withholding of payments, including dividends. Shareholders are directed to visit the RTA’s website for the relevant forms (e.g., ISR-1, ISR-2, SH-13) or download them from Hero MotoCorp’s website. They can submit hard copies to the RTA or scanned copies via email after applying e-sign.
Source: BSE
