Cochin Shipyard has been fined by both the BSE and NSE for non-compliance regarding the composition of its Board of Directors. The fines, amounting to ₹9,77,040 each (including GST), are due to a shortfall in the number of independent directors and related committee constitution issues during the quarter ended September 30, 2025. The company is seeking a waiver for the fines.
Fines Imposed by Stock Exchanges
Cochin Shipyard Limited has received notices from the BSE and NSE imposing fines due to non-compliance with regulations related to the composition of the Board of Directors. Each fine amounts to ₹9,77,040 inclusive of GST.
Reason for Non-Compliance
The fines relate to non-compliance with regulations concerning the composition of the Board of Directors, specifically the absence of a sufficient number of independent directors. This also impacted the constitution of the audit committee and the nomination and remuneration committee. The period of non-compliance was for the quarter ended September 30, 2025.
Company’s Response
Cochin Shipyard Limited is seeking a waiver from the stock exchanges for these fines. The company emphasizes that the appointment of directors is under the purview of the Government of India. They have requested the government to appoint the required number of independent directors. The company is actively working to meet all compliance requirements and expects the committees to be properly constituted following director appointments.
Impact
The financial impact is limited to the fines imposed. The company is taking steps to address the underlying issues and ensure future compliance. The company does not anticipate any significant operational impacts beyond these penalties.
Source: BSE