Garden Reach Shipbuilders & Engineers Ltd. has received notices from the National Stock Exchange of India (NSE) and BSE Ltd. regarding non-compliance related to Independent Directors. Fines totaling ₹9,77,040/- (including GST) have been imposed by each exchange due to the unavailability of required Independent Directors on the Board and non-constitution of key committees. The company is actively engaging with the Government of India for resolution.
Exchange Imposes Fines
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) has been notified by both the National Stock Exchange of India (NSE) and BSE Ltd. about penalties related to non-compliance. The notices, dated November 28, 2025, highlight discrepancies in adhering to regulations concerning the composition of the Board of Directors and key committees.
Reasons for Non-Compliance
The primary reason for the fines is the non-availability of the requisite number of Independent Directors, including a Woman Independent Director, on the Board. Additionally, the constitution of the Audit Committee and Nomination and Remuneration Committee was not in accordance with regulations for the quarter ended September 30, 2025. As a result of these non-compliances, each of the stock exchanges has levied a fine of ₹9,77,040/- (inclusive of GST).
Company’s Response and Actions
GRSE has responded to the notices, clarifying that as a Central Public Sector Enterprise (CPSE) under the Ministry of Defence (MoD), the appointment of Directors, including Independent Directors, rests with the Government of India. The company has requested that it should not be held liable for the imposed fines. GRSE continues to actively work with the Government of India through the MoD to ensure the timely appointment of the necessary Independent Directors to meet corporate governance standards.
Source: BSE
