News Stocks SCILAL Receives Rs 19.54 Lakh Regulatory Fines from BSE and NSE for Board Compliance ViolationsSCILAL Receives Rs 19.54 Lakh Regulatory Fines from BSE and NSE for Board Compliance Violations
Shipping Corporation of India Land and Assets Limited disclosed receiving Rs 9,77,040 fines each from BSE and NSE for board composition and committee constitution violations during Q3FY26. The penalties cover non-compliance with woman director appointment, audit committee constitution, and nomination committee requirements. While the company has constituted statutory committees following an independent director appointment, full compliance remains pending due to insufficient independent directors, prompting coordination with authorities for additional appointments.
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Sci land & assets has received regulatory fines totaling Rs 9,77,040 each from both BSE and NSE for non-compliance with board composition and committee constitution requirements during the quarter ended December 31, 2025. The total penalty amount across both exchanges stands at Rs 19,54,080, highlighting regulatory oversight in corporate governance matters.
Regulatory Violations and Fine Breakdown
The fines were imposed following emails received from BSE Limited and National Stock Exchange of India Limited dated February 27, 2026. The penalties cover multiple violations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
| Violation Type | Regulation | Fine Amount (Including 18% GST) |
|---|---|---|
| Board composition non-compliance including failure to appoint woman director | Regulation 17(1) | Rs 5,42,800 |
| Non-compliance with audit committee constitution | Regulation 18(1) | Rs 2,17,120 |
| Non-compliance with nomination and remuneration committee constitution | Regulation 19(1)/19(2) | Rs 2,17,120 |
| Total Fine per Exchange | Rs 9,77,040 |
The base fine amount of Rs 8,28,000 per exchange was levied with an additional 18% GST, bringing the total to Rs 9,77,040 from each stock exchange.
Corporate Governance Improvements
Following the appointment of Prof. (Dr.) K. Jayaprasad as a Non-Official Independent Director on April 15, 2025, the company has constituted all statutory Board-level Committees. These include the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee, all effective from the same date.
However, while these committees have been established, their composition does not yet fully comply with statutory requirements due to the absence of the requisite number of Independent Directors on the board.
Company Response and Remedial Actions
As a Public Sector Undertaking (PSU), SCILAL is coordinating with the Competent Authority for the appointment of the required number of Independent Directors in accordance with SEBI (LODR) Regulations, 2015. The company has indicated that it is in the process of submitting request letters to both stock exchanges seeking waiver of the imposed fines.
The management has stated that these regulatory actions do not have a significant impact on the company's financial, operational, or other activities, quantifiable in monetary terms to the extent possible.
Timeline and Disclosure Details
The regulatory notices were received on February 27, 2026, at 17:51 hours IST from BSE and 22:17 hours IST from NSE respectively. The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the company's Policy for Determination of Materiality of Events/Information.
The company has submitted this information to both exchanges for their records, emphasizing transparency in regulatory compliance matters despite the current violations.
Historical Stock Returns for SCI Land & Assets
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.60% | +0.42% | +3.32% | -6.98% | -2.74% | +3.18% |
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