Gujarat state financial corp has filed its quarterly compliance certificate with BSE Ltd, confirming adherence to SEBI depositories regulations for the quarter ended March 31, 2026. The certificate submission demonstrates the corporation's commitment to regulatory compliance in securities handling and dematerialization processes.

Regulatory Compliance Filing

The corporation submitted its certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 on April 07, 2026. The filing was addressed to the Listing Compliance Department of BSE Ltd and included confirmation from the company's registrar and transfer agent.

Transfer Agent Confirmation

MCS Share Transfer Agent Ltd., Ahmedabad, serving as the corporation's registrar and transfer agent, provided comprehensive confirmation of compliance with dematerialization requirements. The transfer agent confirmed that all securities received from depository participants during the quarter were properly processed and either accepted or rejected to the depositories.

Key compliance confirmations included:

• Securities received for dematerialization were confirmed to depositories
• All securities comprised in certificates are listed on relevant stock exchanges
• Security certificates received for dematerialization were mutilated and cancelled after verification
• Depository names were substituted in the register of members as registered owners within 15 days

Corporate Information

Gujarat State Financial Corporation operates under the State Financial Corporations Act, 1951, with its headquarters located at Block No.10, Udyog Bhavan, Sector-11, GH-4, Gandhinagar. The certificate was signed by Raveendran Nair, Secretary (Board), on behalf of the corporation.

Regulatory Significance

The quarterly compliance certificate filing ensures transparency in the dematerialization process and confirms that the corporation maintains proper procedures for handling securities transactions. This regulatory requirement helps protect investor interests and maintains market integrity through proper documentation and verification processes.

Gujarat State Financial Corporation has informed BSE about receiving a fine totaling ₹9.88 lakh for non-compliance with corporate governance requirements for the quarter ended December 31, 2025. The disclosure was made through a communication dated March 02, 2026, pursuant to Regulation 30 of SEBI LODR Regulations, 2015.

Fine Details and Breakdown

BSE imposed the fine through an email communication dated February 27, 2026, covering multiple regulatory violations:

Root Cause of Non-Compliance

The primary issue stems from the absence of independent directors on the Board of Directors and its committees. The corporation's governance structure is governed by Sections 10, 15, and 17 read with Section 4(3) of the State Financial Corporations Act, 1951, which mandates that directors are nominees of shareholders, thereby preventing the appointment of independent directors.

Regulatory Changes and Company Response

Prior to September 01, 2021, the corporation enjoyed exemptions and relaxations under the proviso to Regulation 15(2)(b) of SEBI LODR Regulations, 2015, as it was established under Section 3(1) of the State Financial Corporations Act, 1951. However, this proviso was omitted with effect from September 01, 2021.

Following SEBI's advice dated December 20, 2021, to seek amendments to the SFCs Act, 1951, the corporation approached the government through a letter dated December 27, 2021. The company has been following up on this matter and copying BSE on all communications, but is yet to receive a response regarding the requested amendments.

Disputed Fine Component

The corporation has contested the fine of ₹11,800 imposed under Regulation 17(2A), arguing that this regulation applies only to the top 2000 listed entities, and Gujarat State Financial Corporation does not fall within this category. The company noted that BSE had previously waived a similar fine for the quarter ended September 2020 through an email dated April 19, 2021, and has requested BSE to drop this portion of the current fine.

Impact Assessment

The corporation stated that it does not envisage any significant impact from these fines, given the structural constraints imposed by the State Financial Corporations Act, 1951, and its ongoing efforts to seek appropriate amendments to align with SEBI regulations. The company has been receiving similar notices and fines in previous quarters as well.