Sai Life Sciences Limited has received warning letters from both BSE and NSE for failing to hold mandatory Stakeholders' Relationship Committee (SRC) meetings during the financial year 2024-25. The exchanges issued the warning letters on January 06, 2026 and January 07, 2026 respectively, highlighting non-compliance with regulatory requirements.

Regulatory Violation Details

The warning letters specifically address the company's non-compliance with Regulation 20(3A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates that the Stakeholders' Relationship Committee shall meet at least once in a financial year. Both exchanges observed that no SRC meeting was conducted during the financial year ended March 31, 2025.

Company's Clarification

Sai Life Sciences had previously addressed this matter when NSE raised a query on May 21, 2025. The company provided clarification explaining that its equity shares were listed on stock exchanges effective December 18, 2024. Due to the short duration between the listing date and the financial year closure (December 18, 2024 to March 31, 2025), there were no urgent agenda items requiring presentation to the SRC during this period.

The company emphasized that the absence of SRC meetings was due to the brief operational window following its recent listing, rather than any deliberate non-compliance with regulatory requirements.

Exchange Actions and Requirements

Both BSE and NSE have taken a serious view of this non-compliance and issued formal warnings to the company. The exchanges have mandated specific corrective actions:

• Dissemination of warning letters on all stock exchanges where the company is listed
• Presentation of warning letters before the Board of Directors
• Implementation of corrective measures to prevent future lapses
• Strict adherence to all applicable exchange circulars and communications

The exchanges have warned that any future deviations will be viewed with utmost seriousness and may attract appropriate regulatory action.

Impact Assessment

According to the company's disclosure under Regulation 30 of SEBI LODR, there is no material impact on the financial, operational, or other activities of the company resulting from these warning letters. The company has reaffirmed its commitment to maintaining the highest standards of corporate governance and regulatory compliance.

Sai Life Sciences has assured stakeholders of its continued commitment to comply with all applicable SEBI regulations and listing requirements going forward. The company's response demonstrates its proactive approach to addressing regulatory concerns while maintaining transparency with investors and regulatory authorities.

Morgan Stanley has maintained its positive stance on Sai Life Sciences , issuing an overweight rating with a target price of ₹1,020.00 per share. This rating reflects the global investment bank's confidence in the pharmaceutical company's business fundamentals and growth prospects.

Analyst Rating Details

The overweight rating from Morgan Stanley indicates the investment bank's expectation that Sai Life Sciences may outperform relative to its pharmaceutical sector peers or broader market benchmarks. This positive assessment suggests that analysts view the company's current valuation as potentially attractive relative to its possible returns.

Market Implications

Overweight ratings are typically assigned to companies that analysts believe might offer superior risk-adjusted returns compared to their sector average. For Sai Life Sciences, this rating suggests that Morgan Stanley's research team has identified factors that could potentially drive the stock's performance above market expectations.

The ₹1,020.00 target price provides investors with a specific price objective that Morgan Stanley believes the stock could potentially achieve based on their fundamental analysis of the company's operations, market position, and growth potential within the pharmaceutical sector.