Cochin Shipyard’s Board addressed the fine imposed by stock exchanges, totaling ₹9,77,040, due to a shortfall in independent directors. The Board acknowledged the government’s authority in director appointments and noted Dr. Seema Suri’s appointment as an independent director on May 20, 2025. The remaining appointments are awaited, with ongoing efforts to meet compliance requirements. The Audit and Nomination Committees will be reconstituted upon these appointments.
Response to Exchange Fine
Cochin Shipyard Limited (CSL) has addressed the fine imposed by the BSE and NSE, each amounting to ₹9,77,040. The fines were a result of non-compliance regarding the composition of the Board of Directors, specifically the absence of a sufficient number of independent directors for the quarter ended September 30, 2025. This also affected the constitution of the Audit Committee and Nomination and Remuneration Committee.
Board’s Stance on Director Appointments
The Board of Directors acknowledged that the power to appoint directors vests with the Government of India. The Ministry of Ports, Shipping & Waterways appointed Dr. Seema Suri as an independent director on May 20, 2025. The appointment of the remaining five independent directors is currently awaited from the Government of India.
Path to Compliance
Cochin Shipyard is actively pursuing the appointment of the remaining independent directors to fully comply with regulatory requirements. The Audit Committee and the Nomination and Remuneration Committee will be re-constituted once sufficient independent directors are appointed. The Board has advised continued follow-up with the Ministry and the filing of appropriate waiver requests with the Stock Exchanges upon achieving compliance.
This announcement is dated January 28, 2026.
Source: BSE
