HUDCO has submitted its Annual Secretarial Compliance Report for the Financial Year 2025-26. The report, issued by VAP & Associates, Company Secretaries, details the company’s compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. While generally compliant, the report highlights specific instances of non-compliance related to board composition, committee constitution, and quorum requirements during the review period.
HUDCO Submits Annual Secretarial Compliance Report for FY 2025-26
The Housing and Urban Development Corporation Limited (HUDCO) has officially submitted its Annual Secretarial Compliance Report for the Financial Year ended 31st March, 2026. This report, mandated under Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has been prepared by the company’s Secretarial Auditor, VAP & Associates, Company Secretaries.
Key Compliance Areas and Findings
The report examines HUDCO’s adherence to various SEBI regulations and circulars throughout the review period. While the company has generally demonstrated compliance, the report identifies specific areas of non-compliance:
- Regulation 17(1)(a), 17(1)(b), and 17(1)(c): Non-compliance was noted regarding the composition of the Board of Directors. Specifically, the Board’s composition did not meet the requirements of Regulation 17(1)(b) throughout the review period. Furthermore, non-compliance with Regulation 17(1)(a) and 17(1)(c) occurred during specific periods within the financial year.
- Regulation 17(2A): A board meeting held on 04.04.2025 did not meet the quorum requirement due to the absence of Independent Directors.
- Regulation 18(1): The Audit Committee was not duly constituted from 01.04.2025 to 28.04.2025.
- Regulation 19(1)/19(2)/19(2A): The Nomination and Remuneration Committee (NRC) was not properly constituted from 01.04.2025 to 28.04.2025. Additionally, the quorum requirement for inclusion of at least one Independent Director was not met at the NRC Meeting held on 04.04.2025.
- Regulation 20(2A): The Stakeholders Relationship Committee (SRC) was not duly constituted from 01.04.2025 to 28.04.2025.
- Regulation 21(2): The Risk Management Committee (RMC) was not duly constituted from 01.04.2025 to 28.04.2025.
Penalties and Management Response
These instances of non-compliance resulted in monetary fines levied by both BSE and NSE, totaling ₹43,07,000/- for Regulation 17, and other significant fines for violations related to committee compositions and quorum. HUDCO management has stated that the power to appoint Directors vests with the President of India, exercised through the Ministry of Housing and Urban Affairs (MoHUA). The company has been consistently requesting MoHUA for the appointment of requisite Independent Directors. Furthermore, HUDCO has made submissions to BSE and NSE requesting a waiver of the imposed fines.
Other Compliance Aspects
The report also confirmed HUDCO’s compliance with various other requirements, including:
- Maintenance and disclosures on the website.
- Director disqualification criteria.
- Preservation of documents as per SEBI regulations.
- Related Party Transactions, where prior approval was obtained from the Audit Committee.
- Disclosure of events or information under Regulation 30.
- Compliance with Prohibition of Insider Trading regulations.
The company has stated that there were no subsidiaries during the Financial Year 2025-26.
Source: BSE
