Disclosure Context

This is a regulatory disclosure by The State Trading Corporation of India Limited (STC) pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015. The company received a notice from the National Stock Exchange of India Limited (NSE) regarding imposition of fines for non-compliance with SEBI listing regulations.

NSE Notice Details

  • Notice Date: August 25, 2026 (received by STC on same date)
  • Reference Number: NSE/LIST-SOP/COMB/FINES/0954
  • Regulatory Basis: SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 ("Master Circular") issued on July 11, 2023 and last updated on January 30, 2026
  • Non-compliance Period: Quarter ended June 30, 2026

Fine Breakdown

The NSE imposed fines totaling ₹10,21,000 plus 18% GST (₹1,83,780), resulting in a total payable amount of ₹12,04,780 for the following violations:

| Regulation Violated | Fine per Day/Instance (₹) | Days/Instances | Fine Amount (₹) |

| REGULATION 17(1) | 5,000 | 91 days | 4,55,000 |

| REGULATION 18(1) | 2,000 | 91 days | 1,82,000 |

| REGULATION 19(1)/19(2) | 2,000 | 91 days | 1,82,000 |

| REGULATION 20(2)/(2A) | 2,000 | 91 days | 1,82,000 |

| REGULATION 17(2A) | 10,000 | 1 instance | 10,000 |

| REGULATION 17(2) | 10,000 | 1 instance | 10,000 |

| Total Fine | | | 10,21,000 |

| GST @ 18% | | | 1,83,780 |

| Total Payable | | | 12,04,780 |

Nature of Non-compliance

The fines were imposed for "not having requisite number of Independent Directors on the Board of STC for the quarter ended on 30th June, 2026."

Company Response

STC India has requested the exchanges to waive the fine, citing that:

  • STC is a Public Sector Undertaking (Government of India Enterprise)
  • The power to appoint Directors including Independent Directors is under the purview of the Administrative Ministry (Ministry of Commerce & Industry)
  • The company is following up with the Ministry from time to time for appointing requisite number of Independent Directors

Next Steps Required

As per NSE requirements, STC must:

  • Ensure compliance with respective regulations
  • Make payment of fines within 15 days from August 25, 2026 (by September 9, 2026)
  • Place the non-compliance and exchange action before the Board in the next Board Meeting
  • Inform the Exchange of Board comments through NEAPS portal (path: NEAPS > COMPLIANCE > Announcements > Announcements/CA with Subject: 'Updates')

Waiver Process

If seeking waiver, STC must:

  • Submit waiver application through NEAPS > Compliance > Fine Waiver > Waiver Request (email applications not accepted)
  • Provide detailed submission indicating reasons for waiver
  • Mention whether it intends to seek personal hearing before the concerned Committee
  • Achieve compliance as a pre-requisite for waiver application
  • Pay non-refundable processing fees of ₹10,000 plus 18% GST if fine amount is more than ₹5,000 (exclusive of GST)