Sasken Technologies Limited has provided clarification to BSE regarding significant movement in its stock price, attributing the increase to market conditions while confirming compliance with all disclosure requirements. This development comes alongside ongoing GST proceedings where the company faces demands totaling Rs 45.29 crore.

Stock Price Movement Clarification

In response to BSE's inquiry dated December 26, 2025, Sasken Technologies stated that the significant increase in its stock price is purely due to market conditions. The company emphasized that it has made timely disclosures of all events and information required under SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

The company confirmed that there are currently no undisclosed events or information that would have a bearing on its operations or performance requiring disclosure under the listing regulations.

Ongoing GST Proceedings

Meanwhile, Sasken Technologies continues to face GST demands following the dismissal of its appeals by the Joint Commissioner Appeals-5. The orders, received on December 5, 2025, pertain to alleged violations related to reverse charge on payments made to overseas branches.

Company's Position and Compliance

Sasken Technologies maintains that there is no material impact on its financial or operational activities due to the GST proceedings. The company plans to exercise its right to appeal before the Goods and Services Tax Appellate Tribunal (GSTAT).

The trading window for designated persons remains closed effective December 16, 2025, in view of the consideration of financial results for the quarter ending December 31, 2025. Company Secretary Paawan Bhargava signed the clarification, reaffirming the company's commitment to making requisite disclosures as per listing regulations.

Market Implications

While the company attributes the stock price movement to market conditions, investors should consider both the ongoing GST litigation and the company's transparent approach to regulatory compliance. The closure of the trading window indicates upcoming quarterly results, which may provide further insights into the company's operational performance.

Sasken Technologies Limited has been hit with fines totaling Rs 8.82 lakh by India's two major stock exchanges for alleged non-compliance with board composition regulations. The company, however, disputes these allegations and plans to seek withdrawal of the penalties.

Regulatory Action

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) have each imposed a fine of Rs 4.41 lakh (excluding GST) on Sasken Technologies. The penalties are related to alleged non-compliance with Regulations 17(1) and 20(2)/(2A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Alleged Non-Compliance

The fines pertain to the composition of the company's Board of Directors and the Stakeholders Relationship Committee. Regulations 17(1) and 20(2)/(2A) set forth requirements for the structure and membership of these corporate bodies.

Company's Response

Sasken Technologies has stated that it will contest the fines. The company asserts that the composition of its Board and the Stakeholders Relationship Committee has consistently met the requirements set forth under the relevant regulations.

In a statement, the company declared, "We wish to inform that the composition of the Board and the Stakeholders Relationship Committee has consistently met the requirements set forth under Regulation 17(1) and 20(2)/(2A) of the Listing Regulations."

Next Steps

The company has announced its intention to file an application for the withdrawal of the imposed fines. This move underscores Sasken Technologies' confidence in its compliance with the regulatory requirements.

Impact on Operations

Sasken Technologies has stated that the fines will not have any impact on its financial or operational activities, beyond the monetary value of the penalties themselves.

Investors and stakeholders will likely be watching closely as Sasken Technologies navigates this regulatory challenge. The outcome of the company's application for withdrawal of fines could have implications for its corporate governance perception in the market.