Indo Thai Securities Limited Receives Observations on Draft Scheme of Arrangement
Indo Thai Securities Limited (ITSL) has received observation letters from the BSE Limited and the National Stock Exchange of India Limited (NSE) regarding the draft Scheme of Arrangement between Indo Thai Securities Limited and Indo Thai Financial Services Limited (ITFSL), along with their respective shareholders. The observations, received on March 18, 2026, were given with “no adverse observations” from BSE and “no objection” from NSE.The Scheme involves a demerger of the Broking & Distribution Undertaking of ITSL and its vesting into ITFSL, an unlisted wholly owned subsidiary of ITSL. Copies of the observation letters are available on the company's website at https://www.indothai.co.in/.
The Scheme remains subject to applicable regulatory and other approvals.
Key Observations from SEBI
The observations from the Securities and Exchange Board of India (SEBI) included stipulations that the scheme must comply with regulations, ensure disclosure of ongoing legal proceedings, and maintain updated financial information. Other conditions included:
- Compliance with SEBI circulars
- Financials not older than six months
- Prominent disclosure of the scheme details to shareholders
- Equity shares to be issued in demat form only
- Compliance with Companies Act, 2013, and obtaining consent from creditors.
- Detailed disclosures related to the demerger's impact on shareholders and financial implications for promoters and public shareholders.
ITSL is advised to bring the observations to the notice of the National Company Law Tribunal (NCLT).
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