Kavveri Telecom Products Limited has informed the Exchange regarding 'SEBI Warning Reply'.
KAVDEFENCE · price
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Awaiting price reaction for this filing.
Kavveri Defence & Wireless Technologies received an Administrative Warning from SEBI on May 8, 2025, for non-compliance with related party transaction rules. Between April 2024 and September 2024, the company failed to get prior approval from the Audit Committee and shareholders for two transactions: Rs. 0.34 crores with Samoro Telecoms Private Limited (later ratified) and Rs. 0.61 crores with promoter group member Mr. Sanketh Ram Reddy (later called off). No financial penalty or restriction has been imposed, and SEBI has asked the company to be cautious in future. The company says there are no financial implications and has placed the matter before its Board and Audit Committee, with corrective steps underway.
This is a soft regulatory action with no monetary penalty, so the immediate financial impact is nil. However, it flags governance lapses in how related party transactions were handled, which may be a mild concern for investors focused on corporate governance practices.