Housing and Urban Development Corporation Limited (HUDCO) is actively pursuing a waiver for fines levied by stock exchanges, BSE and NSE, due to non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The breaches relate to board composition and meeting quorum for the quarter ended June 30, 2026. HUDCO asserts that director appointments are beyond its control, vesting with the President of India through the Administrative Ministry, and has requested the Ministry to appoint requisite independent directors. The company has presented its case to the Ministry and requested the exchanges to waive the penalties.
HUDCO Pursues Waiver for Exchange Levied Fines
Housing and Urban Development Corporation Limited (HUDCO) has formally communicated with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) regarding fines imposed due to alleged non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These penalties stem from issues concerning the composition of the Board/Committee(s) and the quorum of meetings during the quarter that concluded on June 30, 2026.
Company’s Stance on Non-Compliance
In its communication, HUDCO highlighted that the appointment of Directors, including Independent Directors, is a prerogative of the President of India, exercised through the Administrative Ministry. The company has indicated that a request for the appointment of the requisite Independent Directors has been submitted to the Ministry. Therefore, HUDCO argues that the responsibility for ensuring the required composition of the board lies outside its direct control.
Request for Fine Waiver
Consequently, HUDCO has requested the stock exchanges to consider waiving the imposed fines. The company’s Board, while acknowledging the levy of fines, has directed continuous follow-up with the Ministry to apprise them of the situation and also desired to request the exchanges for a waiver. The total fine levied by NSE amounts to ₹11,71,740 (inclusive of GST), covering various regulations and non-compliance periods up to August 25, 2026.
Procedural Steps for Waiver
The National Stock Exchange (NSE) has outlined the parameters for filing a waiver request. Applications must be submitted through their NEAPS portal under ‘Compliance’ >> ‘Fine Waiver’ >> ‘Waiver Request’. Crucially, compliance with the respective regulations is a prerequisite for processing any waiver application. A non-refundable processing fee of ₹10,000 plus 18% GST is applicable if the fine amount exceeds ₹5,000.
Next Steps for HUDCO
HUDCO is advised to ensure compliance and pay the fines within 15 days of receiving the notice. Failure to do so could lead to actions such as freezing of promoter shareholding. The company is also required to place the matter of non-compliance and the Exchange’s subsequent actions before its Board of Directors in the next meeting and inform the Exchange of the Board’s comments.
Source: BSE
