GRSE fined by NSE, BSE for board

GRSE Receives Fines from NSE and BSE for Non-Compliance with Corporate Governance Rules

Garden Reach Shipbuilders & Engineers Limited (GRSE) has received notices from both the National Stock Exchange (NSE) and the BSE for not meeting certain corporate governance rules during the quarter ending September 30.

Reasons for Non-Compliance:

• Insufficient independent directors on the board
• Non-availability of a woman independent director on the board
• Improper formation of the audit committee and the nomination and remuneration committee

The exchanges have imposed a fine of Rs 9,77,040, including GST, for these shortcomings.

Company's Response:

GRSE has replied to the notices, explaining that as a central public sector enterprise under the Ministry of Defence, appointments to its board -- including independent and woman independent directors -- are made by the Government of India through Presidential Orders.

The company said the non-compliance happened only because the government had not appointed the required directors on time, and that this situation was beyond its control.

Request for Waiver of Penalties:

GRSE has requested the exchanges to waive the penalties, stating that it is actively following up with the Ministry of Defence, its promoter, to fast-track the appointment of the needed independent directors so it can fully meet SEBI’s corporate governance requirements.

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