Arvind Limited has formally addressed regulatory non-compliance issues through its Board of Directors, following penalty notices received from both BSE and NSE for violations of SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations during the quarter ended 30th September, 2025.

Regulatory Non-Compliance and Penalties

The company faced penalties for non-compliance with Regulation 17(1) under SEBI LODR Regulations 2015, which pertains to board composition requirements. Both stock exchanges imposed identical penalty amounts on the textile manufacturer.

The NSE penalty breakdown shows the company was non-compliant for 69 days at ₹5,000 per day, resulting in a basic fine of ₹3,45,000 plus 18% GST of ₹62,100, totaling ₹4,07,100.

Board Resolution and Corrective Action

During the Board meeting held on 30th January, 2026, directors formally noted the regulatory violations and subsequent penalties. The Board emphasized that compliance was restored through the appointment of Mr. Gokul Murgesh Jayakrishna as an Independent Director, effective from 8th September, 2025.

Company's Position on Non-Compliance

The Board clarified that the delay in appointing the Independent Director was attributed to the time required for identifying a suitable candidate. Directors specifically noted there was no mala fide or willful intent on the part of the company or its directors regarding the compliance delay.

Regulatory Framework and Consequences

The penalties were imposed under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November, 2024, which outlines standard operating procedures for imposing fines in case of non-compliance with listing regulations. The exchanges had warned of potential consequences including:

• Freezing of entire promoter shareholding in the company and other securities
• Transfer to 'Trade for Trade' basis or Z Category classification for consecutive defaults
• Suspension of trading in company securities

Communication and Disclosure

As required under SEBI regulations, the company has disclosed the penalty notices and board comments to both stock exchanges. The matter was formally placed before the Board of Directors as mandated by regulatory requirements, with proper documentation submitted to BSE and NSE for public dissemination.

Arvind Limited has expanded its international presence through the incorporation of a new step-down subsidiary in the United Arab Emirates. The company announced on 28th January, 2026, that Arvind PD Composites Private Limited, its existing step-down subsidiary, has incorporated a wholly owned company named Arvind PD International FZ-LLC in the UAE.

Corporate Structure and Capital Details

The newly incorporated entity has been established with specific capital parameters and ownership structure:

Business Focus and Industry Sector

The new subsidiary will operate in the fibre glass products manufacturing sector. The primary business objectives include manufacturing and processing of fibre glass products and related industrial products. This expansion aligns with the company's diversification strategy beyond its traditional textile business.

Regulatory Compliance and Disclosure

Arvind Limited has fulfilled its regulatory obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that:

• The promoter, promoter group, and group companies of Arvind Limited do not have any direct interest in the newly incorporated entity
• No governmental or regulatory approvals are required for this incorporation
• The entity is yet to commence commercial operations

Current Status and Operations

Arvind PD International FZ-LLC has just received its Certificate of Incorporation and is yet to start commercial operations. As a newly incorporated entity, it has no turnover history or operational track record. The company will begin its business activities in the fibre glass manufacturing sector once operations commence.

Strategic Implications

This incorporation represents Arvind Limited's continued expansion into international markets and diversification into specialized manufacturing sectors. The establishment of the UAE-based subsidiary provides the company with a strategic presence in the Middle East region for fibre glass products manufacturing and processing activities.