Cochin Shipyard has been fined Rs 9,77,040 each by both BSE and NSE for non-compliance with SEBI LODR Regulations, specifically for not appointing enough independent directors during the quarter ended December 31, 2025.
The fines relate to breaches of Regulation 17(1), which pertains to the composition of the Board of Directors, and Regulations 18 and 19, concerning the constitution of the Audit Committee and the Nomination and Remuneration Committee.
The SEBI Master Circular issued on January 30, 2026, required the company’s Board of Directors to review the matter and share their comments on the Exchange portal. Consequently, Cochin Shipyard‘s Board discussed the issue in a meeting on March 27, 2026.
The Board acknowledged that the appointment of directors is under the purview of the Government of India. It noted that Dr. Seema Suri was appointed as an independent director by the Ministry of Ports, Shipping & Waterways on May 20, 2025. However, the appointment of five more independent directors is still pending.
The Board is actively engaging with the Government to expedite these appointments to comply with SEBI regulations. The reconstitution of the Audit Committee and the Nomination and Remuneration Committee can only occur once these appointments are made.
Additionally, the Board plans to request a waiver of the fines from the Stock Exchanges once compliance is achieved, following the Policy for Exemption of Fines.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).