Stanley Lifestyles Limited has informed the Exchange about a show cause notice received by its step down subsidiary
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Awaiting price reaction for this filing.
Stanley Lifestyles' step-down subsidiary Sana Lifestyles has received a show cause notice from the Registrar of Companies, Bangalore (Ministry of Corporate Affairs) alleging non-compliance with related party transaction rules under Sections 188 and 184 of the Companies Act, 2013 for transactions done in FY 2018-19 without fresh or omnibus board approvals. The notice, dated August 12, 2025, is directed at the directors and ex-director of Sana Lifestyles, and the authority has also asked for domestic transfer pricing audit reports and proof of arm's length pricing. The potential financial implication indicated is ₹5 lakh each for the three directors, but this is a personal liability and no penalty has been imposed yet. The subsidiary is evaluating its response and preparing a representation. The matter involves a small step-down subsidiary and predates the current promoter group's active involvement in some respects.
This is a preliminary regulatory notice with no penalty imposed yet, and the financial impact indicated is on individual directors personally, not on Stanley Lifestyles itself. Short-term stock impact is likely limited, but investors should watch for the subsidiary's response and any further escalation.