Cochin Shipyard faces fine of Rs 9.77 lakh from both exchanges for regulatory incompliance issues

Mubmai: State-run Cochin Shipyard Limited has received Notices from the stock exchanges (NSE and BSE) with regards to the imposing of fine for non-compliance with SEBI LODR Regulations.

The company has been imposed a fine of Rs. 9,77,040 each (incl. GST @18%) pursuant to Chapter VII: Penal Actions for Non-Compliance of SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

The details of the violation include Non-compliance with Regulation 17(1) (Composition of Board of Directors – absence of sufficient number of Independent Directors), and Regulations 18 and 19 (Non-compliance with the constitution of audit committee and nomination and remuneration committee) of the SEBI LODR Regulations during the quarter ended December 31, 2025.

The company has however mentioned that the said non-compliances were neither due to the negligence or default by the Company nor within the control of the management of the Company, appropriate requests for waiver of fines imposed will be filed with the stock exchanges in due course as per the extant Policy for Exemption of Fines.

This should be noted that Cochin Shipyard Limited is a Central Public Sector Enterprise under the administrative control of the Ministry of Ports, Shipping and Waterways, Government of India. Accordingly, the power to appoint Directors on the Board of the Company vests with the Government of India.

The Company has forwarded necessary requests to the Government of India for appointing sufficient number of independent directors and constant efforts are being made to meet the compliance requirements.

Further, the audit committee and nomination and remuneration committee will be duly constituted in line with the SEBI LODR Regulations once sufficient number of independent directors are appointed by the Government of India, the company mentioned in an exchange filing.