Mahindra & Mahindra Ltd (M&M) has informed stock exchanges that New Democratic Electoral Trust (NDET) has ceased to be a step-down subsidiary of the company following an allotment of additional equity shares by the trust.
In a regulatory filing, M&M said its aggregate stake in NDET declined from 72.07% to 49.63% of the trust’s post-allotment equity share capital.
The additional shares were allotted to NDET’s shareholders, including Mahindra & Mahindra and its subsidiaries. The resulting dilution reduced the group’s aggregate holding below 50%, leading to the change in NDET’s subsidiary status.
The company said it had intimated the stock exchanges of the development in compliance with applicable listing regulations.
In India, electoral trusts are governed by rules prescribed under the Income-tax Rules, 1962, and are subject to disclosure requirements relating to contributions and distributions.
New Democratic Electoral Trust (NDET) is an electoral trust that receives contributions from eligible donors and distributes them to political parties in accordance with India’s electoral trust regulations. Electoral trusts provide a formal channel for corporate and other eligible contributions to political parties and are required to disclose details of donations received and distributed under the applicable rules.