Date: August 13, 2026

Board Meeting Outcomes

The Board of Directors of Max Financial Services Limited considered the matter of non-compliance with Regulation 19 of SEBI LODR Regulations regarding the composition of the Nomination and Remuneration Committee (NRC) at its meeting held on August 13, 2026.

The Board noted:

  • A temporary deviation in NRC composition occurred for two days in the quarter ended March 31, 2026
  • The deviation arose due to retirement of Mr. K. Narasimha Murthy as Independent Director and cessation as NRC member effective close of business hours on March 29, 2026
  • This resulted in 3 Independent Directors out of 5 NRC members, creating a temporary shortfall against the requirement of at least two-thirds Independent Directors
  • Following appointment of Mr. Bharat Anand as Independent Director on March 29, 2026, management initiated process for his co-option to NRC
  • Mr. Bharat Anand was co-opted as NRC member on April 9, 2026, restoring full compliance with Regulation 19
  • The deviation was temporary and procedural in nature
  • Independent Directors continued to constitute majority of NRC during intervening period (three out of five members)
  • No NRC meetings were held during the period of non-compliance
  • Current NRC composition is fully compliant with four Independent Directors out of total strength of six members
  • Company informed Promoters about the matter and remitted fine of ₹4,000 plus GST to each Stock Exchange
  • Management assured implementation of appropriate measures to prevent recurrence

Regulatory Action Details

National Stock Exchange Notice (May 27, 2026):

  • Reference: NSE/LIST-SOP/COMB/FINES/0611
  • Fine levied: ₹4,000 basic fine + ₹720 GST = ₹4,720 total payable
  • Regulation: 19(1)/19(2) for quarter ended March 31, 2026
  • Non-compliance duration: 2 days
  • Fine rate: ₹2,000 per day

BSE Notice (May 27, 2026):

  • Fine levied: ₹4,000 basic fine + ₹720 GST = ₹4,720 total payable
  • Regulation: 19(1)/19(2) for quarter ended March 31, 2026

Compliance Status

The company has achieved full compliance with Regulation 19 of SEBI Listing Regulations as of April 9, 2026, and has paid the levied fines to both stock exchanges.