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Imposition of Fines by NSE and BSE: Garden Reach Shipbuilders & Engineers Limited Faces Consequences of Non-Compliance

Strategic Insights

— 1 min read

Garden Reach Shipbuilders & Engineers Limited, a prominent player in the Indian shipbuilding industry, has recently received notices from the National Stock Exchange of India (NSE) and BSE Ltd. regarding non-compliance with certain provisions of the SEBI Listing Regulations. The company has been fined a total of ₹12,54,340 by each exchange due to its failure to maintain an optimum combination of Non-Executive Directors, Independent Directors, and Women Independent Directors on its Board. This non-compliance also led to the company's inability to reconstitute its Audit Committee, Nomination and Remuneration Committee, Stakeholder Relationship Committee, and Risk Management Committee during the quarter ended June 30, 2025.

Key Takeaways:

  • Garden Reach Shipbuilders & Engineers Limited has been fined ₹12,54,340 by both NSE and BSE due to non-compliance with SEBI Listing Regulations.
  • The company failed to maintain an optimum combination of Non-Executive Directors, Independent Directors, and Women Independent Directors on its Board.
  • The non-compliance also resulted in the company's inability to reconstitute its required committees, including the Audit Committee, Nomination and Remuneration Committee, Stakeholder Relationship Committee, and Risk Management Committee.
  • The company has received notices from NSE and BSE regarding non-compliance under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
  • The non-compliances pertain to Reg 17, 17(2A), 18(1), 19(1)/19(2), 20(2)/(2A), and 21(2) of the SEBI Listing Regulations.
  • The fine imposed by NSE and BSE is a result of the regulatory bodies' efforts to maintain transparency and accountability in India's stock market.
  • The company has acknowledged the non-compliances and has expressed its intention to rectify the issues.

Statistics:

  • ₹12,54,340: The fine imposed by NSE on Garden Reach Shipbuilders & Engineers Limited.
  • ₹12,54,340: The fine imposed by BSE on Garden Reach Shipbuilders & Engineers Limited.
  • 30 Jun, 2025: The quarter in which the company failed to reconstitute its required committees.
  • NSE: The National Stock Exchange of India that issued the notice to Garden Reach Shipbuilders & Engineers Limited.
  • BSE: BSE Ltd. that issued the notice to Garden Reach Shipbuilders & Engineers Limited.

Sources:

  • [1] National Stock Exchange of India (NSE)
  • [2] BSE Ltd.
  • [3] SEBI Listing Obligations and Disclosure Requirements Regulations, 2015

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