Cochin Shipyard’s Board of Directors addressed fines levied by stock exchanges, totaling ₹12,66,140 each from BSE and NSE, due to delays in appointing independent directors, resulting in non-compliance with regulations. The Board acknowledged that the authority to appoint directors rests with the Government of India and that the appointment of one director occurred on May 20, 2025, with further appointments awaited. The Board is actively pursuing compliance.
Addressing Regulatory Fines
Cochin Shipyard Limited (CSL) faced fines from both the BSE Limited and the National Stock Exchange of India Limited, each amounting to ₹12,66,140 (including GST at 18%). These fines were imposed due to non-compliance related to the composition of the Board of Directors, specifically the absence of independent directors. These issues occurred during the quarter that ended on June 30, 2025.
Board’s Response and Actions
The Board of Directors acknowledged the fines and recognized that the power to appoint Directors to the Board rests with the Government of India. It was noted that the Ministry of Ports, Shipping & Waterways appointed Dr. Seema Suri as an independent director on May 20, 2025. Following her appointment, the company reconstituted the Stakeholders Relationship Committee and the Risk Management Committee on June 01, 2025. The appointment of the remaining five independent directors is awaited from the Government of India.
Seeking Waivers and Compliance
The Board noted that the non-compliances were not due to negligence or default by the company. CSL had requested a waiver of fines, and NSE granted a waiver on September 12, 2025. The reply from BSE is still awaited. The Board is continuing to follow up with the Administrative Ministry and is preparing to file appropriate waiver requests for the remaining non-compliant provisions once compliance is achieved.
Source: BSE
