Appellate Tribunal dismisses appeal regarding share confiscation case involving Tamilnad Mercantile Bank Limited
Tamilnad Mercantile Bank Limited has received an order from the Appellate Tribunal under SAFEMA, New Delhi, which dismissed a long-pending appeal concerning the confiscation of shares transferred in connection with foreign investors. The decision was conveyed to the bank on July 14, 2026.The matter originated from a Show Cause notice dated December 17, 2014, issued by the Directorate of Enforcement, which led to a penalty being imposed on the bank and others via an order passed by the Special Director on August 14, 2020. Following this imposition, the Deputy Legal Advisor, Directorate of Enforcement had filed an appeal with the Appellate Tribunal under SAFEMA, New Delhi, dated January 27, 2021.
The appeal centered on claiming the confiscation of 46,862 shares transferred in the name of foreign investors or sought to remand the matter for de-nova adjudication. The Appellate Tribunal reviewed the case and subsequently dismissed the appeal through an order dated July 9, 2026.
The adverse action was related to a contravention of FEMA Regulations concerning the recording of share transfers.
Key details regarding this regulatory proceeding are as follows:
| Authority | Outcome of Proceeding | Details of Allegation/Action | Date of Order Received by Bank |
|---|---|---|---|
| Appellate Tribunal under SAFEMA, New Delhi | Appeal Dismissed (Order dated 09.07.2026) | The appeal challenged the penalty imposed regarding the transfer of 46,862 shares to foreign investors. | July 14, 2026 |
The bank stated that this specific regulatory matter would not have a material impact on its financial statements.
TMB Stock Price Movement
Shares of Tamilnad Mercantile Bank Limited slipped on Tuesday, closing at ₹780.35 after shedding 2.26% from the previous close. The stock saw a traded volume of 98,226 shares during the session, trading within an intraday range defined by a low of ₹777.15 and a high of ₹800.95.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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