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.

Garware Technical Fibres Limited has been penalized by both major Indian stock exchanges for regulatory non-compliance related to board composition requirements. The company received identical fines totaling ₹1.94 lakh each from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 28, 2025.

Regulatory Non-Compliance Details

The fines were imposed for violation of Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, during the quarter ended September 30, 2025. The specific non-compliance involved the company's failure to maintain proper board composition, particularly the absence of a woman independent director.

Board's Response and Clarification

At the Board meeting held on February 11, 2026, the directors provided detailed observations regarding the regulatory notices. The Board emphasized that proactive steps were initiated by the Nomination and Remuneration Committee well in advance to appoint a new woman independent director, anticipating the exit of Ms. Mallika Sagar upon completion of her two consecutive terms.

The company had recommended Ms. Kirti Dharmesh Mangwani for appointment as Additional Director (Non-Executive Independent Director) at the Nomination and Remuneration Committee meeting held on April 29, 2025. Subsequently, the company submitted an application to the Directorate General of Civil Aviation (DGCA) on May 19, 2025, seeking mandatory security clearance.

Compliance Restoration

The Board clarified that the delay in appointment was solely attributable to the time taken by DGCA to issue security clearance, which was beyond the company's control. Upon receiving the required clearance, Ms. Kirti Dharmesh Mangwani was immediately appointed with effect from November 25, 2025.

Exchange Actions and Requirements

Both exchanges have mandated payment of the fines within 15 days of the notice date. Failure to comply may result in:

• Freezing of entire promoter shareholding in the company and other securities
• Potential shifting of trading to 'Trade for Trade' basis (Z Category) for consecutive defaults
• Additional penalties as per the master circular provisions

The company has been advised to place the matter before the Board and submit the Board's comments to the exchanges for dissemination. The exchanges have also provided options for waiver applications, subject to compliance achievement and payment of processing fees.

Corporate Governance Impact

The Board reaffirmed that the company acted diligently and in good faith throughout the process. The temporary non-compliance was entirely due to regulatory factors beyond the company's control, and compliance was achieved at the earliest permissible opportunity upon receipt of the required DGCA clearance.