Garware Technical Fibres Limited has disclosed receiving fine waiver approval from the National Stock Exchange of India for regulatory non-compliance during the quarter ended December 31, 2025. The company had faced penalties from both BSE and NSE for violating board composition requirements under SEBI regulations.

Regulatory Non-Compliance Details

The company received notices from both stock exchanges on February 27, 2026, regarding the imposition of fines for non-compliance with Regulation 17(1) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The violation pertained to the company having fewer than six directors and not maintaining a woman independent director during part of the quarter ended December 31, 2025.

Board Composition Changes

The non-compliance situation arose when Ms. Malika Sagar ceased to be an Independent Director upon completion of her second term on August 28, 2025. This created a gap in the board composition, leaving the company without the required number of directors and without a woman independent director.

The company had identified Ms. Kirti Dharmesh Mangwani as a replacement, with the Nomination and Remuneration Committee recommending her appointment in their meeting held on April 29, 2025. However, her appointment required prior approval from the Director General of Civil Aviation (DGCA), Government of India.

Resolution and Fine Waiver

Garware Technical Fibres submitted the necessary application to DGCA on May 19, 2025, seeking regulatory approval for the director appointment. Upon receiving the required approval, Ms. Kirti Dharmesh Mangwani was appointed as Non-Executive Independent Director effective from November 25, 2025, bringing the company into complete compliance with Regulation 17(1).

Financial Impact

The company has confirmed that there will be no financial impact from these regulatory notices, as the National Stock Exchange approved the waiver of fines on February 16, 2026. The waiver covers fines for delay in compliance pertaining to Regulation 17(1)(a) and 17(1)(c) for the quarters ended September 30, 2025 and December 31, 2025.

According to the company's disclosure, the fine waiver means that the penalties of Rs. 2,75,000 plus GST each from both exchanges will not be required to be paid. The company has stated that there is no impact on its financial, operational, or other activities due to this regulatory matter.

Garware Technical Fibres Limited has successfully obtained approval from the National Stock Exchange of India Limited (NSE) for waiver of regulatory fines imposed for non-compliance with SEBI listing regulations. The development marks a positive resolution to the company's earlier regulatory compliance issues.

Background of Fine Imposition

The company had previously disclosed on November 29, 2025, that both BSE Limited and National Stock Exchange of India Limited had imposed fines for non-compliance of Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The regulatory action was taken for violations during the quarter ended September 30, 2025.

Waiver Application Process

Following the imposition of fines, Garware Technical Fibres filed an application with NSE, being the designated stock exchange, seeking waiver of fines imposed by both exchanges. The application covered delays in compliance of Regulation 17(1) of the SEBI LODR Regulations, 2015 for two consecutive quarters - the quarter ended September 30, 2025 and the quarter ending December 31, 2025.

NSE Approval Details

The NSE communicated its decision through a letter dated February 16, 2026, addressed to the Company Secretary of Garware Technical Fibres Limited. The exchange confirmed that the matter was placed before the Relevant Authority of the Exchange, which considered the company's request for waiver of fines favorably.

Regulatory Compliance Advisory

As part of the waiver approval, NSE has advised the company to ensure compliance with Listing Regulations and any other applicable regulations in the future. This standard advisory emphasizes the importance of maintaining regulatory compliance to avoid similar issues.

Company Communication

Garware Technical Fibres communicated this development to both stock exchanges through a letter dated February 17, 2026, signed by Company Secretary Sunil Agarwal. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates continuous disclosure of material events.