Housing and Urban Development Corporation (HUDCO) has sought a waiver of a fine totalling ₹5.43 lakh levied by the National Stock Exchange (NSE) and BSE for non-compliance with board composition regulations. The fine pertains to HUDCO’s failure to meet the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically regarding the composition of its Board of Directors during the quarter ending 31st December 2025.
The company, in its communication to the exchanges, highlighted that as a government entity, the appointment of directors is under the purview of the President of India, exercised through the Administrative Ministry. HUDCO has already requested the concerned ministry for the appointment of the requisite independent directors, which is beyond the company’s control.
The NSE had issued a notice to HUDCO on 27th February 2026, detailing the non-compliance and the fine structure. According to the notice, HUDCO was fined ₹5,000 per day for 92 days of non-compliance, resulting in a total fine of ₹4.60 lakh, with an additional 18% GST amounting to ₹82,800, bringing the total payable amount to ₹5.43 lakh.
HUDCO’s board has discussed the issue and decided to make continuous follow-ups with the concerned ministry regarding the penalties imposed by the exchanges. The board also expressed the desire to request a waiver of the fine from the stock exchanges, citing the lack of control over the appointment of directors.
The NSE’s notice outlined the procedure for HUDCO to apply for a waiver, which includes submitting a detailed waiver request through the NSE’s portal, NEAPS, and ensuring compliance with the regulations before applying for the waiver. The notice also mentioned that a non-refundable processing fee of ₹10,000 plus 18% GST is required if the fine exceeds ₹5,000.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).