HMT Limited has officially announced the dissolution of its wholly owned subsidiary HMT Watches Limited, marking the end of the subsidiary's corporate existence. The announcement was made to stock exchanges under Regulation 30 of SEBI (LODR) Regulations, 2015.

Dissolution Details

The dissolution process reached completion with HMT Watches Limited being struck off from the Register of Companies under Section 248(2) of the Companies Act, 2013. The striking off became effective from 02.03.2026, formally ending the subsidiary's legal status.

Timeline of Events

The dissolution process began earlier when HMT Limited communicated to stock exchanges on 05.01.2026 regarding the filing of an application for striking-off HMT Watches Limited with the Ministry of Corporate Affairs, Government of India. This initial communication set the formal process in motion for the subsidiary's dissolution.

Regulatory Compliance

The announcement was made in compliance with regulatory requirements under SEBI (LODR) Regulations, 2015. HMT Limited, being a government undertaking, has fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India Limited about this corporate development.

The communication was signed by Kishor Kumar S, AGM (Company Secretary) of HMT Limited, and was digitally authenticated on 02.03.2026. This formal closure represents a significant corporate restructuring move by the government-owned enterprise.

HMT Limited has been penalized by both major Indian stock exchanges for failing to comply with board composition requirements during the quarter ended December 31, 2025. The government-owned company disclosed receiving fine notices from BSE Limited and National Stock Exchange of India Limited (NSE) under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Fine Details and Regulatory Violation

The stock exchanges have imposed significant penalties on HMT Limited for non-compliance with board governance norms. The violation specifically relates to Regulation 17(1) of SEBI (LODR) Regulations, 2015, which mandates proper composition of the Board of Directors.

The regulatory breach occurred because HMT Limited did not have the requisite number of independent directors on its Board of Directors during the specified quarter, violating SEBI's corporate governance requirements.

Company's Response and Remedial Actions

HMT Limited has initiated steps to address the regulatory non-compliance and seek relief from the imposed penalties. The company is following the prescribed procedures under stock exchange guidelines to resolve the matter.

Key Actions Undertaken:

• Application for waiver of fines imposed by both stock exchanges
• Following provisions of SOP Circular issued by Stock Exchanges
• Formal request to Administrative Ministry for director appointments
• Compliance initiative to meet SEBI regulatory requirements

Government Company Constraints

As a Government of India undertaking, HMT Limited faces unique challenges in board composition management. The company operates under specific governance structures that require government intervention for director appointments.

The Administrative Ministry has been formally requested to appoint the requisite number of independent directors, including one independent woman director, to ensure the company's board composition aligns with SEBI regulations.

Regulatory Compliance Framework

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to transparency. HMT Limited continues to work toward achieving full regulatory compliance while operating within the constraints of its government ownership structure.