Cochin Shipyard Ltd on Thursday disclosed it received a fine of ₹9.6 lac each from the BSE and the NSE exchanges.
The fines were levied for non-compliance with Regulation 17(1) over not having a sufficient number of independent directors in its Board of Directors, as well as 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 June.
Cochin Shipyard said it received the emails informing of the fine from both exchanges on Tuesday.
The company stated that the non-compliance was due to the power to appoint Directors vesting with the Government of India, as Cochin Shipyard Ltd is a PSU.
Cochin Shipyard Ltd had made requests to the Government of India for appointing Independent Directors and Dr. Vani Ahluwalia was appointed as a Non-official (Independent) Director on August 17 earlier.
The company said it planned to file requests for waiver of the imposed fines with the stock exchanges, arguing that the non-compliances were not due to negligence or default by the company or within the management's control.
Cochin Shipyards shares were down about 0.25% at the time of writing to ₹1,543. The multibagger stock is down about 45% from its July 2024 all-time high levels.