MORARKA FINANCE LIMITED
Details of Regulatory Action
Authority: BSE Limited
Action Taken: BSE imposed a fine of ₹122,720 (inclusive of GST) for alleged non-compliance with Regulation 34 of the SEBI LODR Regulations, 2015. The fine is for the alleged non-submission of the Annual Report for the financial year 2025-26 within the prescribed period.
Date of Receipt of Order: The company received the order via email from BSE Limited on October 30, 2026.
Breakdown of Fine:
- Basic Fine: ₹104,000
- GST @ 18%: ₹18,720
- Total Fine Payable: ₹122,720
The fine for Regulation 34 is prescribed at ₹2,000 per day until compliance is achieved.
Company's Contention and Compliance Status
Morarka Finance contends that it had duly finalized and submitted its complete Annual Report for FY 2025–26 on June 8, 2026, which it believes was within the statutory timeline. The filing was made on the BSE Listing Centre portal but under the "Notice to Shareholders" tab.
Upon noting the requirement to submit under the specific "Annual Report" tab, the company has now re-filed the report under the designated tab. The company states this was an "inadvertent procedural oversight" with zero intent of non-compliance, as the information was publicly available on the exchange portal from the original submission date.
Payment Deadline: The company states it will pay the fine within 15 days from the date of BSE's email (October 30, 2026).
Financial and Operational Impact
The company states it does not foresee any material impact on its financial position, operations, or other activities, except for the monetary outflow of the ₹122,720 fine.
Potential Consequences of Non-Payment
BSE's communication outlines further actions should the company fail to pay the fine within 15 days:
- The Exchange will initiate action to freeze the entire shareholding of the promoter in the entity, as well as all other securities held in the promoter's demat account.
- As this is alleged to be the second consecutive year of non-compliance for Regulation 34, the company would be transferred to the Z group and be liable for suspension of trading of its equity shares.
The company is also advised to place this matter before its Board of Directors in its next meeting and inform the Exchange of any comments made by the board.
Company's Request
Morarka Finance has submitted a Waiver Application, requesting BSE to waive the penalty. Its argument for waiver is based on the claim that the disclosure was completed on a timely basis and public transparency was maintained, with the error being purely procedural (wrong tab selection).
Additional Information
Regulatory Reference: This disclosure is made in relation to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 (Chapter-VII(A)-Penal Actions for Non-Compliance).
Remittance Details: The fine is to be paid to a dedicated virtual bank account of BSE Limited (Account No.: BSER05482, ICICI Bank Ltd. - CMS Branch, IFSC: ICIC0000104).
Contact for Queries:
- Query on Reg.34/43A: Sayli.Jadhav@bseindia.com
- Query on remittance: bse.soplodr@bseindia.com