Cochin Shipyard Limited has been fined ₹9,66,420 (including GST) by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for non-compliance with SEBI LODR Regulations. The penalties stem from alleged violations related to the composition of the Board of Directors and the constitution of its audit, nomination, and remuneration committees for the quarter ended June 30, 2026. The company is seeking waivers for these fines.
Stock Exchange Fines Imposed on Cochin Shipyard
Cochin Shipyard Limited has received notices from the stock exchanges, imposing fines for alleged non-compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations. The total fine amounts to ₹9,66,420 for each exchange, inclusive of GST, pursuant to Chapter VII: Penal Actions for Non-Compliance. These penalties were issued following a Master Circular dated January 30, 2026.
Details of Non-Compliance and Penalties
The alleged violations pertain to Regulation 17(1) concerning the Board of Directors’ composition due to an insufficient number of Independent Directors, and Regulations 18 and 19 related to the constitution of the audit committee and the nomination and remuneration committee. These issues were identified for the quarter ended June 30, 2026.
Communication and Awareness
The BSE issued its communication via email on August 25, 2026, at 19:07 Hrs, while the NSE followed on August 25, 2026, at 21:53 Hrs. Due to the receipt of these emails after office hours and the subsequent holiday for Onam on August 26, 2026, the company became fully aware of the fines only on August 27, 2026.
Impact and Waiver Requests
The impact on the company’s financial or operational activities is limited to the extent of the fines imposed. Cochin Shipyard Limited intends to file appropriate requests for the waiver of these penalties with the stock exchanges in due course, citing that the non-compliances were neither due to negligence nor within the control of the company’s management. The company also noted that the required directors and committees were duly constituted following the appointment of Dr. Vani Ahluwalia as an Independent Director on August 17, 2026.
Source: BSE
