Cummins India Limited has formally responded to fines levied by the BSE and NSE for non-compliance with Regulation 18(1) of the Listing Regulations for the quarter ended December 31, 2025. The Board deemed the non-compliance inadvertent and unintentional. Corrective action, including the reconstitution of the Audit and Compliance Committee effective November 11, 2025, was noted. The total fine levied by each exchange was ₹2,000 plus applicable taxes, and a waiver application has been filed.
Formal Response to Exchange Penalties
Cummins India Limited issued a formal communication on March 11, 2026, addressing fines imposed by both the BSE Limited and the National Stock Exchange of India Limited. These penalties stem from non-compliance with Regulation 18(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically concerning the quarter ended December 31, 2025.
The reference documents, emails from the exchanges dated February 27, 2026, confirm that a fine of Rs. 2,000/- plus applicable taxes was levied by each exchange, pursuant to the SEBI Master Circular dated November 11, 2024.
Board’s Review and Stance
The identified non-compliance was reviewed by the Board of Directors. The Board observed that the failure to comply was inadvertent and unintentional. Furthermore, the Company reaffirmed its steadfast commitment to adhering to all applicable regulatory frameworks moving forward.
Key mitigating factors noted by the Board include:
- The completion of corrective actions, specifically the reconstitution of the Audit and Compliance Committee, effective November 11, 2025.
- Acknowledgement that the fines levied have already been paid by the Company within the prescribed timelines.
- Confirmation that an application for waiver of the fine has been filed with both Stock Exchanges, with the outcome currently awaited.
Commitment to Future Compliance
The Board reiterated the Company’s dedication to aligning its practices with the latest regulatory guidance and ensuring compliance with the clarified position going ahead. The communication requests the Stock Exchanges to take these board comments on record.
Exchange Fine Details (Illustrative)
For context, the fine structure provided by the National Stock Exchange (NSE) indicates:
- Regulation Breached: Regulation 18(1) (Constitution of Audit Committee).
- Fine Amount per Instance: Rs. 2,000.
- Period of Non-Compliance: 1 instance (Q4 2025).
- Total Fine Payable (Inclusive of GST @ 18%): Rs. 2,360.
The BSE notice also highlighted potential severe actions for repeat offenses, such as the transfer to the ‘Z’ group category and suspension of trading if non-compliance for Regulation 17(1), 18(1), and 27(2) is a second consecutive quarterly occurrence. The company confirmed payment was made to avoid these escalations.
Source: BSE
