Cochin Shipyard Limited has been fined approximately ₹1.91 crore in total by the BSE and NSE for non-compliance related to the appointment of independent directors and committee compositions. The company cited that the appointment of directors is vested with the Government of India and is awaiting further appointments. The Board acknowledged the fine and is pursuing a waiver request once compliance is achieved.
Cochin Shipyard Faces Significant Fines Over Director Compliance
Cochin Shipyard Limited is addressing fines totaling Rs. 9,55,800 each, aggregating to approximately ₹1.91 crore (including GST), imposed by the BSE Limited and the National Stock Exchange of India Limited. These penalties stem from non-compliance with SEBI LODR Regulations concerning the composition of the Board of Directors, specifically the absence of a sufficient number of independent directors, and the constitution of the Audit Committee and Nomination and Remuneration Committee for the quarter ended March 31, 2026.
Governance Challenges and Government Appointment Reliance
The company’s Board, in its meeting on August 14, 2026, acknowledged the fines and highlighted that the power to appoint directors rests with the Government of India. While one independent director, Dr. Seema Suri, was appointed on May 20, 2025, the appointment of five additional independent directors is still pending. The Board emphasized that the reconstitution of the Audit Committee and Nomination and Remuneration Committee is contingent upon the Government of India appointing the requisite number of independent directors.
Path Forward: Ministry Follow-up and Waiver Requests
In response to the situation, the Board has advised continued follow-up with the Administrative Ministry. Furthermore, the company plans to submit appropriate waiver requests to the Stock Exchanges once the compliance requirements are met. This proactive approach aims to resolve the non-compliance issues and mitigate the financial impact of the imposed fines.
Source: BSE
