Fine Organic Industries Limited disclosed on January 7, 2026, that it received warning letters from both the National Stock Exchange of India Limited (NSE) and BSE Limited regarding non-compliance with Risk Management Committee meeting requirements. The warnings, dated January 6, 2026, were issued under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Non-Compliance Details

The warning letters specifically addressed the company's failure to comply with Regulation 21(3A) of SEBI Listing Regulations, which mandates that the Risk Management Committee must meet at least twice in a financial year. During the financial year 2024-25, Fine Organic Industries' Risk Management Committee convened only once, falling short of the regulatory requirement.

Circumstances Leading to Non-Compliance

According to the company's disclosure, two Risk Management Committee meetings were originally planned for FY 2024-25. However, the second meeting, initially scheduled before March 31, 2025, was rescheduled to April 4, 2025, due to several factors:

• Business exigencies
• Directors' overseas travel commitments
• Time zone differences affecting meeting coordination

Despite the rescheduling, the company maintained that the gap between the two meetings did not exceed the statutory limit of 210 days. Nevertheless, this resulted in only one meeting being held during the financial year ended March 31, 2025.

Exchange Communications and Warnings

Both stock exchanges issued stern warnings to the company regarding the non-compliance. The NSE warning letter, signed by Rakhi Makhloga, Manager – Listing Compliance, emphasized that the non-compliance was viewed seriously and advised the company to exercise due caution to avoid recurrence of such lapses.

Similarly, the BSE warning letter, issued by Deputy Vice President Shilpa Saboo and Deputy Manager Sagar Darra, stated that any future deviation would be viewed with utmost seriousness and may attract appropriate action as deemed necessary.

Company's Response and Corrective Measures

Fine Organic Industries has acknowledged the regulatory breach and outlined its commitment to compliance going forward. The company's response includes:

• Ensuring strict adherence to SEBI Listing Regulations in the future
• Exercising due caution to prevent recurrence of such events
• Implementing corrective measures as advised by the exchanges

The company confirmed that no penalty, restriction, or sanction was imposed pursuant to the warning letters, and there would be no financial implications arising from this communication.

Regulatory Requirements and Disclosure

As mandated by the stock exchanges, Fine Organic Industries was required to disseminate copies of the warning letters and place them before the Board of Directors along with details of corrective measures taken to avoid such lapses. The disclosure was made in compliance with Regulation 30 of SEBI Listing Regulations and relevant SEBI circulars dated November 11, 2024, and February 25, 2025.

The company's proactive disclosure and commitment to enhanced compliance measures demonstrate its intent to maintain regulatory adherence and prevent similar occurrences in future reporting periods.

Fine Organic Industries Limited has announced the incorporation of a wholly-owned subsidiary in the United Arab Emirates, marking a significant step in the company's international expansion strategy. The subsidiary, named Fine Organics FZE, was incorporated in Dubai's Jebel Ali Free Zone on December 15, 2025, with the Certificate of Incorporation issued on December 24, 2025.

Subsidiary Formation Details

Fine Organic Industries informed the Bombay Stock Exchange and National Stock Exchange of India about this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. The notification was made in reference to the outcome of the Board Meeting dated May 08, 2025.

Strategic Objectives

The establishment of Fine Organics FZE serves multiple strategic purposes for the parent company. The wholly-owned subsidiary has been incorporated in Dubai, United Arab Emirates, to establish a local presence in GCC countries and improve supply chain efficiencies. This move aims to better serve the Middle Eastern market and leverage Dubai's strategic location as a business hub.

Regulatory Compliance

The company has fulfilled the necessary regulatory requirements as mandated under the SEBI Listing Regulations. The disclosure was made in accordance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

Corporate Structure Impact

As a wholly-owned subsidiary, Fine Organics FZE will operate under the complete control of Fine Organic Industries Limited. The proposed initial capital of the subsidiary will be in the form of cash, providing the financial foundation for operations in the UAE market. This acquisition does not fall within related party transactions, and no promoter or group companies have any interest in the entity being acquired.

The incorporation represents Fine Organic Industries Limited's commitment to expanding its international footprint and enhancing its operational capabilities in the GCC region.