Ambika Cotton Mills Limited , a textile manufacturer based in Coimbatore, has been slapped with a hefty fine by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for non-compliance with Securities and Exchange Board of India (SEBI) regulations. The company now faces a total penalty of Rs 27.10 lakh and plans to challenge the decision.

Regulatory Non-Compliance

The fine was imposed due to violations of SEBI regulations 17(1)(b) and 17(1A), which pertain to the composition of the board of directors and the age limit for non-executive directors, respectively. Each exchange levied penalties totaling Rs 13.56 lakh, including GST, bringing the combined fine to Rs 27.10 lakh.

Breakdown of Penalties

According to the LODR (Listing Obligations and Disclosure Requirements) data filed by the company, the penalties were broken down as follows:

Company's Response

Ambika Cotton Mills initially filed a waiver application, seeking relief from the penalties. However, the NSE rejected this application, as confirmed in their order (Ref. No.NSE/LIST/SOP/0993).

In response to the rejection, the company has taken the following steps:

1. Paid the full fine amount to both NSE and BSE.
2. Announced plans to file an appeal before the Securities Appellate Tribunal (SAT) against NSE's order.

Implications and Next Steps

The imposition of these fines highlights the importance of strict adherence to SEBI regulations for listed companies. Ambika Cotton Mills' decision to appeal to the SAT indicates their disagreement with the interpretation of the regulations in question.

As the company proceeds with its appeal, stakeholders will be watching closely to see how the SAT views the case and whether it will provide any clarity on the interpretation of regulations 17(1)(b) and 17(1A) of the SEBI (LODR) Regulations, 2015.

Ambika Cotton Mills has assured its investors that it will keep them informed of any developments regarding the appeal process. The outcome of this case could have implications not only for Ambika Cotton Mills but also for other listed companies in terms of regulatory compliance and interpretation.

Ambika Cotton Mills Limited announced its quarterly results for the period ended June 30, 2025. The company reported revenue from operations of Rs 191.98 crore compared to Rs 136.31 crore in the previous quarter and Rs 209.09 crore in the same quarter last year. Total income stood at Rs 195.27 crore.

The company posted a profit of Rs 15.92 crore for the quarter, slightly higher than Rs 15.86 crore in the previous quarter but lower than Rs 21.53 crore in the corresponding quarter of the previous year. Basic and diluted earnings per share were Rs 27.81 compared to Rs 37.61 in the same quarter last year.

Key Financial Highlights

The Board of Directors approved these results in their meeting held on August 8, 2025. The results have been subject to limited review by statutory auditors.

Despite a slight increase in profit compared to the previous quarter, the company faced challenges as evidenced by the lower revenue and profit figures compared to the same quarter last year.