Carysil Ltd pays ₹1.44 lakh for FEMA reporting delay

Carysil Limited disclosed that the Reserve Bank of India (RBI) has levied a compounding fee of ₹1,44,000 due to a delay in reporting an overseas investment made by its subsidiary. The order, dated July 6, 2026, was passed under Section 15(1) of the Foreign Exchange Management Act, 1999 (FEMA). The company confirmed that the financial implication is limited to the payment of this fee and that the order does not have a material impact on its financial, operational, or other activities.

The regulatory action stems from a contravention of Regulation 13 of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004. The specific violation involved a delay in reporting the investment made by the company's subsidiary beyond the prescribed time limit. The compounding order was issued by the Foreign Exchange Department of the RBI.

Details of the Compounding Order

The following table outlines the key details of the regulatory order and the nature of the contravention:

Sr. No.	Particular	Remark / Update
1	Name of the authority	Reserve Bank of India, Foreign Exchange Department, Mumbai ("RBI")
2	Nature and details of the action(s) taken or order(s) passed	Compounding Order under Section 15(1) of FEMA, 1999, compounding a contravention of Regulation 13 of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, on account of delay in reporting to RBI, the investment made by the Company's subsidiary. A sum of ₹1,44,000/- (Rupees One Lakh Forty Four Thousand only) has been levied.
3	Date of receipt of direction or order	July 06, 2026
4	Details of the violation(s)/contravention(s) committed	Delay in reporting to RBI, the investment made by the Company's subsidiary, in contravention of Regulation 13 of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 (FEMA 120/RB-2004).
5	Impact on financial, operational or other activities	The order pertains to a procedural/reporting delay in respect of an overseas investment and does not have any material impact on the financial, operational or other activities of the Company, other than the compounding sum of ₹1,44,000/- payable to RBI.

The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Reena Shah, Company Secretary & Compliance Officer, signed the disclosure on behalf of Carysil Limited.