Cochin Shipyard Limited confirmed receiving notices from the BSE and NSE imposing a combined fine totaling ₹9,77,040 (including GST). The penalties stem from non-compliance with corporate governance norms related to the Board Composition and the constitution of the Audit and Nomination Committees during the quarter ending December 31, 2025. The company asserts that these lapses were beyond management control and intends to seek a waiver for the imposed penalties.
Regulatory Penalties Confirmed
Cochin Shipyard Limited has disclosed that both the BSE Limited and the National Stock Exchange of India Limited (NSE) have issued directives imposing financial penalties on the company. The fines were communicated via email on March 02, 2026.
Details of Financial Impositions
The total penalty imposed by each exchange amounts to Rs. 9,77,040 each, inclusive of 18% GST. These charges are levied under the framework for Penal Actions for Non-Compliance, specifically referencing a SEBI Master Circular dated November 11, 2024.
Nature of Non-Compliance
The violations pertain to the quarter ending December 31, 2025, and include:
- Non-compliance with rules governing the Composition of the Board of Directors, specifically relating to the absence of a sufficient number of Independent Directors.
- Non-compliance with regulations concerning the proper constitution of the Audit Committee and the Nomination and Remuneration Committee.
Operational Impact and Waiver Request
The company has stated that the financial or operational impact of these lapses is Nil, aside from the fines themselves. Cochin Shipyard Limited clarified that as a Central Public Sector Enterprise, the power to appoint Directors rests with the Government of India. Since the non-compliances were not due to management negligence, appropriate requests for the waiver of the imposed fines will be forwarded to the stock exchanges in due course, adhering to the extant Exemption Policy.
Source: BSE
