Kerala Ayurveda Ltd has received a settlement order from SEBI concerning violations of related party transaction rules. The case involved transactions with Ayurvedagram Heritage Wellness Centre Pvt Ltd during FY2024-25 without prior shareholder approval. Shareholders later ratified the deals, and SEBI accepted the company’s settlement application, concluding regulatory proceedings.
Kerala Ayurveda Ltd, a prominent player in India’s Ayurvedic healthcare sector, announced that it has formally received a settlement order from the Securities and Exchange Board of India (SEBI). The order resolves regulatory proceedings linked to non-compliance with Regulation 23(4) of SEBI’s Listing Obligations and Disclosure Requirements (LODR).
The violation stemmed from material related party transactions with Ayurvedagram Heritage Wellness Centre Pvt Ltd during FY2024-25, which exceeded regulatory limits but were executed without prior shareholder approval. To rectify the lapse, shareholders passed an ordinary resolution on June 18, 2025, ratifying the transactions. Subsequently, Kerala Ayurveda filed a settlement application with SEBI on July 17, 2025, leading to the regulator’s acceptance and closure of the matter.
Notable Updates
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Settlement order received: SEBI formally concluded proceedings against Kerala Ayurveda.
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Violation context: Related party transactions exceeded limits without prior shareholder approval.
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Shareholder action: Ordinary resolution ratified the transactions in June 2025.
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Regulatory compliance: Settlement application filed in July 2025, accepted by SEBI
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Business impact: Closure of proceedings allows Kerala Ayurveda to focus on growth and operations.
Major Takeaways
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The settlement underscores SEBI’s strict stance on corporate governance.
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Kerala Ayurveda’s proactive shareholder ratification helped resolve the issue.
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The company can now redirect attention to strengthening its Ayurvedic healthcare business.
Sources: SEBI official order, FilingReader corporate disclosure, ScanX News