Cochin Shipyard Limited Receives Notices of Fines from Stock Exchanges Over Non-Compliance

Cochin Shipyard Limited Receives Notices of Fines from Stock Exchanges Over Non-Compliance​

Cochin Shipyard Limited (CSL), a Government of India Category-1 Miniratna Company under the Ministry of Ports, Shipping and Waterways, has reported receiving notices from both the National Stock Exchange of India (NSE) and BSE Limited regarding non-compliance with specified corporate governance regulations.

The notices detail the imposition of fines for violations pertaining to its board structure and committee constitution during the quarter ended March 31, 2026.

According to the reported details, the authorities—BSE Limited and National Stock Exchange of India Limited—imposed a fine of Rs. 9,55,800 each, including GST @18%. These penalties were issued pursuant to Chapter VII: Penal Actions for Non-Compliance of SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026, dated January 30, 2026.

The violations cited relate to non-compliance with the SEBI LODR Regulations. Specifically, the company was noted for non-compliance with:

• Regulation 17(1): Composition of Board of Directors, citing the absence of a sufficient number of Independent Directors.
• Regulations 18 and 19: Non-compliance regarding the constitution of the audit committee and the nomination and remuneration committee.

The company stated that the immediate financial impact, excluding the fines, was nil.

Compliance Status and Next Steps​

CSL confirmed that it operates as a Central Public Sector Enterprise under the administrative control of the Ministry of Ports, Shipping and Waterways, Government of India. Consequently, the power to appoint Directors on the Board of the Company rests with the Government of India.

The company noted that it has forwarded necessary requests to the Government of India to appoint the required number of independent directors.

CSL indicated that once the Government of India appoints a sufficient number of independent directors, the audit committee and the nomination and remuneration committee will be duly constituted in line with the SEBI LODR Regulations.

Furthermore, the company stated that because the non-compliances were not due to the negligence or default of the management, it will file appropriate requests for a waiver of the fines imposed with the stock exchanges in due course, adhering to the extant Policy for Exemption of Fines.

COCHINSHIP Stock Price Movement​

On Wednesday, shares of Cochin Shipyard Limited gained 0.18%, settling at ₹1523.9 as trading concluded. The stock saw notable volume, supported by 1.13 million shares traded during the session, finding intraday support between ₹1512.1 and ₹1553.1.