Date: 26.08.2026
Regulatory Action and Fines
SCILAL has been levied a total fine of ₹13,36,940 each by BSE Limited (email dated 25.08.2026) and National Stock Exchange of India Limited (email dated 25.08.2026) for non-compliances during the quarter ended 30.06.2026. The fine amount consists of ₹11,33,000 plus 18% GST (₹2,03,940) per exchange.
The specific non-compliances and corresponding fines levied by each exchange are:
- Regulation 17(1): Non-compliance with requirements pertaining to composition of the Board including failure to appoint woman director - ₹5,36,900
- Regulation 17(2A): Non-compliance with requirements pertaining to quorum of Board meetings - ₹11,800
- Regulation 18(1): Non-compliance with constitution of audit committee - ₹2,14,760
- Regulation 19(1)/19(2): Non-compliance with constitution of nomination and remuneration committee - ₹2,14,760
- Regulation 20(2)/(2A): Non-compliance with constitution of stakeholder relationship committee - ₹1,79,360
- Regulation 21(2): Non-compliance with constitution of risk management committee - ₹1,79,360
Total fine per exchange: ₹13,36,940
Background and Reasons for Non-Compliance
Following the appointment of Prof. (Dr.) K. Jayaprasad (DIN: 09585722) as a Non-Official Independent Director effective 15.04.2025, the Company constituted all requisite statutory Board-level Committees (Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee) from the same date.
During Q1 FY2027 (quarter ended 30.06.2026):
- The composition of Audit Committee and Nomination and Remuneration Committee was not fully compliant due to absence of requisite number of Independent Directors
- Upon completion of the one-year tenure of the existing Independent Director (who ceased office effective 15.04.2026), the composition of Stakeholders Relationship Committee and Risk Management Committee also became non-compliant due to absence of an Independent Director
- For Regulation 17(2A), the requisite quorum for the Board Meeting held on 05.05.2026 could not be met due to absence of requisite number of Independent Directors
Company Response and Status
The Company states that as a Public Sector Undertaking (PSU), it is coordinating with Competent Authority for appointment of requisite number of Independent Directors in accordance with SEBI LODR Regulations, 2015.
SCILAL is in the process of submitting request letters for waiver of the fine to both stock exchanges.
The Company confirms that this action "does not have significant impact on financial, operation or other activities of the Company, quantifiable in monetary terms to the extent possible."
Event Timeline
Date and time of occurrence of event: 25.08.2026 at 1909 hours IST (from BSE) and 2153 hours IST (from NSE)