Shipping Corporation of India Land and Assets Receives Fines from Stock Exchanges Over Board Committee Non-Compliance
The Shipping Corporation of India Land and Assets Limited (SCILAL) has received fines from both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) for various instances of non-compliance regarding the composition and functioning of its statutory Board-level Committees during the quarter ended June 30, 2026.The fine levied by each stock exchange totals Rs. 13,36,940/- (which includes Rs. 11,33,000/- plus 18% GST). The non-compliance pertains to several regulations related to board structure and committee composition.
A detailed breakdown of the non-compliance issues and the corresponding fine amounts (inclusive of 18% GST) levied by each Stock Exchange is provided below:
| S. No. | Regulation | Particulars | Fine Amount (Including 18% GST) levied by each Stock Exchange (in Rs.) |
|---|---|---|---|
| 1. | Regulation 17(1) | Non-compliance with the requirements pertaining to the composition of the Board including failure to appoint woman director | 5,36,900 |
| 2. | Regulation 17(2A) | Non-compliance with the requirements pertaining to quorum of Board meetings. | 11,800 |
| 3. | Regulation 18(1) | Non-compliance with the constitution of audit committee | 2,14,760 |
| 4. | Regulation 19(1)/ 19(2) | Non-compliance with the constitution of nomination and remuneration committee | 2,14,760 |
| 5. | Regulation 20(2)/(2A) | Non-compliance with the constitution of stakeholder relationship committee | 1,79,360 |
| 6. | Regulation 21(2) | Non-compliance with the constitution of risk management committee | 1,79,360 |
| TOTAL | TOTAL | TOTAL | 13,36,940 |
Reasons for Non-Compliance
The company confirmed that the issues arose primarily due to the lack of requisite Independent Directors (IDs) on the Board of Directors.
Following the appointment of Prof. (Dr.) K. Jayaprasad (DIN: 09585722) as a Non-Official Independent Director on April 15, 2025, the company constituted the Audit Committee, Nomination and Remuneration Committee (NRC), Stakeholders Relationship Committee (SRC), and Risk Management Committee (RMC).
However, the composition of the Audit Committee and the NRC was not fully compliant with applicable statutory requirements due to the absence of the requisite number of Independent Directors. Furthermore, the SRC and RMC also became non-compliant following the completion of the one-year tenure of an existing Independent Director, who ceased to hold office on April 15, 2026.
Additionally, the requisite quorum for a Board Meeting held on May 5, 2026, could not be met under Regulation 17(2A) due to the absence of the required number of Independent Directors on the Board.
The company stated that it is coordinating with the Competent Authority for the appointment of the necessary number of Independent Directors in accordance with the regulations.
The corporation noted that the action does not have a significant impact on its financial, operation or other activities, quantifiable in monetary terms to the extent possible. The company is currently submitting requests for the waiver of the fine to both Stock Exchanges.
SCILAL Stock Price Movement
As of 12:51 PM, shares of Shipping Corporation of India Land and Assets Limited are gaining ground at ₹40.31, pushing the stock up by 0.62%. The equity trades on a healthy volume, with 60,234 shares exchanged during the live market session.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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