News Stocks Aravali Securities and Finance Limited Fined ₹14.27 Lakh by BSE for Regulatory Non-ComplianceAravali Securities and Finance Limited Fined ₹14.27 Lakh by BSE for Regulatory Non-Compliance
Aravali Securities and Finance Limited faces a ₹14,26,620 fine from BSE for non-compliance with SEBI Listing Regulations during March 2020 and June 2025 quarters. The violations relate to board and committee composition requirements, which the company attributes to clerical errors and temporary internal issues. The company has filed a waiver application with BSE and continues to seek resolution through prescribed processes.
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Aravali Securities and Finance Limited has disclosed receiving a fine of ₹14,26,620 from BSE Limited for non-compliance with various SEBI Listing Regulations. The company received the communication from BSE on January 06, 2026, regarding violations that occurred during the quarters ended March 2020 and June 2025.
Regulatory Violations and Fine Details
The BSE has imposed penalties for non-compliance with specific provisions of the SEBI Listing Regulations across two distinct periods. The violations encompass multiple regulatory requirements related to corporate governance structures.
| Violation Period: | Regulations Violated | Nature of Non-Compliance |
|---|---|---|
| March 2020: | 17(1), 18(1), 19(1)/19(2), 20(2)/(2A) | Board composition, committee structures |
| June 2025: | 18(1), 19(1)/19(2) | Audit and nomination committee composition |
| Total Fine: | ₹14,26,620 (incl. GST) | Payable to BSE |
Committee Composition Issues
The company's non-compliance primarily relates to the composition of key committees including the Board, Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee. Aravali Securities has maintained that it has been regularly compliant with the provisions and has properly constituted its committees as per applicable regulations.
The company had originally constituted the Audit Committee and Nomination & Remuneration Committee on November 12, 2019. These committees were subsequently reconstituted on August 7, 2024, and again on May 23, 2025, following the resignation of Mr. Durga Prasad (Independent Director) and the appointment of new chairpersons.
Company's Response and Remedial Actions
Aravali Securities has attributed the recent violations to clerical errors in preparing the Integrated Governance Report, where the cessation date of a director was inadvertently not updated. The company explained that this led to a temporary mismatch in the reported composition of committees, though the actual committee structure remained compliant.
| Remedial Action: | Details |
|---|---|
| Revised Filing: | Corrected Integrated Governance Report filed on October 28, 2025 |
| Waiver Application: | Filed with BSE for fine waiver and account unfreezing |
| Current Status: | Waiver application under BSE consideration |
| Follow-up Actions: | Continuous communication with BSE via mail and calls |
Financial Impact and Explanation
The financial implication is limited to the fine amount of ₹14,26,620 including GST. The company has clarified that the non-compliance occurred due to unforeseen circumstances, including medical complications faced by the Company Secretary following childbirth, which temporarily affected internal communication and timely reporting.
Aravali Securities has emphasized that there was no intention to ignore or delay compliance, and the company deeply regrets the lapse. The organization is actively seeking a waiver of the imposed fine through the prescribed BSE process and has requested the exchange to unfreeze promoter demat accounts as per the applicable SEBI Master Circular provisions.
Historical Stock Returns for Aravali Securities & Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.61% | -4.86% | -5.38% | -19.63% | -16.19% | +109.52% |
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