Tesco has unveiled plans to offer financial compensation for its 2014 accounting scandal to around 10,000 of its shareholders.

The supermarket chain will award shareholders who bought shares between August 26 and September 19, 2014 compensation of 24.5p per share plus 4% interest.

The average payout is expected to be around £400, according to analysis by Hargreaves Lansdown.

KPMG has been appointed to oversee the compensation process.

Tesco was ordered to pay out compensation by the Financial Conduct Authority (FCA) to shareholders that bought shares between August 26 and September 19 as it encompasses the period during which the grocer issued a trading update that overstated profits by £263m; it later informed the market of false accounting.

Hargreaves Lansdown chartered financial planner Danny Cox said: “Tesco needs to repair the reputational damage from the accounting scandal and will hope this compensation will draw a line under the matter.

“The claims process is a little clunky but important to follow as it’s a simple equation: no claim, no compensation.”

A statement from Tesco said: “Further announcements will be made in respect of the opening and operating of the scheme in due course, with KPMG expecting to have completed the preparations required to open and operate the scheme before the end of August 2017.”

The Serious Fraud Office has charged three former Tesco employees over the accounting scandal.