In a key corporate governance development, L&T Finance Limited (formerly known as L&T Finance Holdings Limited) has officially informed the stock exchanges about the cessation of Mr. Thomas Mathew T. from the company's Board of Directors. The disclosure was made under Regulations 30 and 51 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in accordance with SEBI’s master circular dated November 11, 2024.

As per the company’s formal communication dated July 1, 2025, Mr. Mathew completed his second consecutive term of five years as an Independent Director on June 30, 2025, and has accordingly ceased to be a Director on the Board of L&T Finance with effect from July 1, 2025.

Regulatory Disclosure and Compliance

The intimation to both the BSE Limited and the National Stock Exchange of India Limited was made through an official filing marked “INTERNAL” for regulatory purposes, with the company citing compliance with both Regulations 30 and 51 of the SEBI Listing Regulations. These provisions mandate prompt disclosure of significant changes in the board composition, especially where such changes impact independent oversight functions or governance structure.

The filing was submitted by Ms. Apurva Rathod, Company Secretary and Compliance Officer of L&T Finance Limited.

Board Tenure and Governance Contributions

Mr. Thomas Mathew T., who held DIN: 00130282, served on the board for two full terms, comprising a total of ten years of governance and oversight. His departure comes in line with SEBI’s regulatory framework, which limits the tenure of Independent Directors to two consecutive five-year terms, after which a cooling-off period is mandated.

Though the company did not provide additional commentary on Mr. Mathew’s specific contributions in the official filing, industry observers recognize his experience in the financial sector and corporate governance as valuable to L&T Finance’s transformation journey, especially post the company’s structural realignment from being a holding company to a core lending institution.

No Immediate Successor Announced

The disclosure does not indicate an immediate successor to Mr. Mathew, nor does it mention any proposed board restructuring or new appointments. This suggests that the Board Nomination and Remuneration Committee may still be evaluating suitable candidates or waiting for regulatory clearance before making the next move.

As per standard protocol, any new Independent Director appointment will also be disclosed under SEBI regulations, and is expected to reflect the company's evolving strategic priorities in retail lending, digital finance, and sustainability governance.

Background on L&T Finance and Governance Context

L&T Finance Limited, a part of the Larsen & Toubro Group, is one of India’s prominent financial services companies engaged primarily in retail finance, farm equipment loans, two-wheeler finance, home loans, and micro-loans. Over the past few years, the company has realigned its focus under its ‘Lakshya 2026’ strategy, aiming to strengthen its retail portfolio while gradually exiting non-core businesses.

In this transformation phase, the Board of Directors plays a critical role in setting the vision and ensuring effective governance, compliance, and stakeholder value creation. Independent Directors like Mr. Mathew have contributed to providing objective oversight, especially in the areas of risk management, regulatory alignment, and ethical conduct.

SEBI Rules on Independent Directors

According to SEBI guidelines, an individual can serve as an Independent Director in a listed company for a maximum of two terms of five years each. Post that, a three-year cooling-off period is required before the person can be reappointed as an Independent Director in the same company. This regulation is aimed at preserving independence, fresh perspectives, and transparency in corporate boardrooms.

By ensuring timely and structured exits of long-serving Independent Directors, SEBI reinforces the spirit of dynamic and accountable corporate governance across Indian public companies.

Conclusion

The cessation of Mr. Thomas Mathew T. as an Independent Director of L&T Finance Limited, effective July 1, 2025, marks a routine but important transition in the company’s board composition. His departure comes after ten years of service, during which he supported the company’s governance framework amid structural and strategic evolution.

As L&T Finance continues to move forward with its retail-focused growth strategy, the appointment of new independent voices on its board is likely to follow. Market observers and stakeholders will watch closely for updates on how the board evolves and adapts to align with the company’s vision and regulatory best practices.

The Upcoming IPOs in this week and coming weeks are Anthem Biosciences, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS, Crizac.

The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.