Lokesh Machines Limited has formally requested BSE and NSE to waive penalties totaling ₹7.43 lakh imposed for non-compliance with board composition regulations. The company's board addressed the matter in its December 29, 2025 meeting, citing statutory limitations that prevented immediate compliance with exchange requirements.

Penalty Details and Non-Compliance Issue

Both BSE Limited and National Stock Exchange of India Limited imposed fines on November 28, 2025, for the company's failure to comply with Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The regulation pertains to the mandatory composition requirements for the board of directors.

The company promptly informed both exchanges about the non-compliance and penalty levy on November 29, 2025, following the receipt of notices.

Board's Response and Justification

During the December 29, 2025 board meeting, directors deliberated on the non-compliance instance and the consequent exchange penalties. The board emphasized that Lokesh Machines Limited operates under unique regulatory constraints due to its business nature.

The company manufactures small arms and operates under the provisions of the Arms Act, 1959, read with the Arms Rules, 2016. This regulatory framework mandates prior approval from the Ministry of Home Affairs (MHA) for any changes in the company's directorship structure.

Statutory Limitations and MHA Requirements

The board highlighted several key factors that contributed to the temporary non-compliance:

• Mandatory requirement for MHA prior approval for directorship changes
• Compliance with MHA advisories and directions
• Adherence to statutory framework under Arms Act, 1959
• Operational constraints beyond the company's direct control

The board observed that the temporary non-compliance arose solely due to these mandatory MHA approval requirements, which are beyond the company's control and represent statutory obligations that must be fulfilled before making any board composition changes.

Waiver Application and Current Status

Lokesh Machines Limited has submitted waiver applications to both exchanges in accordance with the Policy for Exemption of Fines levied under the SEBI SOP Circular. The applications request relief from the penalties, asking the exchanges to consider the statutory limitations imposed under the Arms Rules, 2016 and MHA advisories.

The board reaffirmed its commitment to maintaining high standards of corporate governance and compliance with all applicable regulatory requirements, while acknowledging the unique operational constraints it faces as a small arms manufacturer.

Lokesh Machines Limited Announces Significant New Order

Lokesh Machines Limited (LML), a prominent player in the Indian machine tools industry, has recently secured a substantial new order valued at ₹80.00 crore. This development marks a significant milestone for the company and is expected to have a positive impact on its financial performance.

Order Details

• Order Value: ₹80.00 crore
• Client: Undisclosed (as per company announcement)
• Nature of Order: Supply of machined components

Impact on Company Performance

The new order is anticipated to contribute significantly to LML's revenue stream. While the specific timeline for order execution has not been disclosed, it is expected to bolster the company's order book and potentially improve its financial outlook for the coming quarters.

Company Background

Lokesh Machines Limited, headquartered in Hyderabad, India, specializes in the manufacturing of CNC machines, machined components, and sub-assemblies. The company has been serving various sectors including automotive, aerospace, and general engineering industries.

Market Reaction

Following the announcement, investors and market analysts will be closely watching LML's stock performance. Such large orders often lead to positive sentiment among shareholders and could potentially impact the company's stock price in the short term.

Conclusion

This new order worth ₹80.00 crore represents a significant business opportunity for Lokesh Machines Limited. It not only demonstrates the company's strong market position but also indicates potential growth in its core business segments. Shareholders and potential investors should monitor the company's future announcements for more details on the order execution and its impact on financial results.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with financial experts before making investment decisions.