HUDCO Fined by Exchanges Over Board Composition Non-Compliance; Company Requests Fine Waiver
Housing & Urban Development Corporation Limited (HUDCO) has been fined by stock exchanges regarding the composition of its Board of Directors for the quarter ended March 31, 2026. The company is pursuing a waiver of these penalties, stating that the appointment process for directors falls outside the scope of corporate control.The fines were levied after observations made by both BSE and NSE concerning non-compliance with provisions related to the composition of the Board of Directors.
According to the financial details provided by the Exchanges, HUDCO was assessed a total fine of Rs 531,000, which includes GST @18%. The penalties related to Regulation 17(1) and encompassed nine months (90 days) of non-compliance.
The specifics of the fines are detailed below:
| Regulation | Quarter Ended | Fine Amount per Day | Number of Days Non-Compliance | Basic Fine Amount |
|---|---|---|---|---|
| REGULATION 17(1) | March 31, 2026 | Rs 5,000 | 90 | Rs 450,000 |
The calculations for the total penalty are as follows:
| Description | Amount (Rs.) |
|---|---|
| Total Basic Fine | 450,000 |
| GST @18% | 81,000 |
| Total Fine Payable (Inclusive of GST) | 531,000 |
HUDCO released comments on the levy of fines, noting that it is a Government Company. The Board reviewed the status of the penalty and requested continuous follow-up with the concerned Ministry regarding the penalties levied by the Exchanges for the non-compliance.
The Board has also formally requested the Stock Exchanges to grant a waiver of the fine. HUDCO noted that since the power to appoint Directors vests with the President of India, exercised through the Administrative Ministry, the appointment process is beyond the control of the Company. Based on this fact, the company asserted that the fines levied by the Stock Exchanges should be waived off.
HUDCO Stock Price Movement
Today, the stock of Housing & Urban Development Corporation Limited edged higher to close at ₹206.96 after adding ₹1.24, representing a 0.61% gain. The equity traded within a daily range of ₹205.55 and ₹208.95 on a volume of approximately 1.98 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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