Rishabh instruments has completed the allotment of 3,000 equity shares under its Employee Stock Option Plan 2022 - Scheme B on January 22, 2026. The Board of Directors approved this allotment through a circular resolution, enabling eligible employees to exercise their stock options.

Share Allotment Details

The allotted shares carry a face value of ₹10.00 each and were issued at an exercise price of ₹250.00 per share, representing a premium of ₹240.00 per share. The allotment has resulted in an increase in the company's equity share capital structure.

ESOP Scheme Specifications

The allotment was conducted under the Rishabh Instruments Limited Employee Stock Option Plan 2022 - Scheme B, which was filed with stock exchanges on January 17, 2024. The scheme enables eligible employees to acquire equity shares in the company at predetermined exercise prices.

Share Characteristics and Compliance

The newly allotted equity shares are identical in all respects to the company's existing equity shares and rank pari-passu with them. The shares have been assigned distinctive numbers from 38478609 to 38481608 and will be issued in demat form under ISIN INE0N2P01017.

The allotment complies with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 10(c) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. No lock-in period applies to these shares, and no additional listing fees are payable for this allotment.

Capital Structure Impact

Following this ESOP allotment, Rishabh Instruments' total issued equity share capital has reached ₹38,48,16,080.00, comprising 3,84,81,608 fully paid-up equity shares of ₹10.00 each. The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited, trading under scrip code 543977 and symbol RISHABH respectively.

Rishabh Instruments Limited has disclosed receiving warning letters from both BSE and NSE dated January 6, 2026, concerning non-compliance with audit committee quorum requirements under SEBI regulations. The company made this disclosure on January 7, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Violation Details

The warning letters relate to a violation of Regulation 18(2)(b) of SEBI LODR Regulations during an audit committee meeting held on February 7, 2025. According to the regulation, the quorum for audit committee meetings shall be either two members or one-third of the members, whichever is greater, with at least two independent directors present.

Exchange Communications

Both stock exchanges issued similar warning letters highlighting the serious nature of the non-compliance. BSE's letter, signed by Deputy Vice President Shilpa Saboo, emphasized the need for immediate corrective measures to prevent recurrence of such lapses. NSE's communication, signed by Manager Rakhi Makhloga, warned the company to exercise due caution and initiate corrective steps to ensure compliance with SEBI LODR regulations.

The exchanges have mandated that the company disseminate copies of the warning letters and place them before the Board of Directors along with corrective measures taken to avoid future lapses.

Company's Explanation

Rishabh Instruments provided a detailed explanation for the compliance lapse. The company stated that the audit committee meeting was attended by two committee members, including the chairman who is an independent director, meeting the quorum requirements under the Companies Act, 2013. However, one independent director who had confirmed attendance could not participate due to an unforeseen emergency at the last moment.

Corrective Measures Implemented

As a remedial action, the company placed all transactions and resolutions approved at the February 7, 2025 audit committee meeting before a subsequent properly constituted audit committee meeting held on May 27, 2025. The audit committee members ratified all the previous decisions during this meeting, which was conducted in full compliance with Regulation 18(2) of SEBI LODR Regulations.

Financial Impact and Future Compliance

The company has indicated that there is no financial impact from this regulatory violation. Rishabh Instruments has reiterated its commitment to maintaining the highest standards of corporate governance and has implemented robust internal compliance frameworks to ensure ongoing adherence to all applicable laws and regulations. The company expressed regret for the lapse and emphasized its continued commitment to strict regulatory compliance.