Setco Automotive Limited has received a closure direction from the Gujarat Pollution Control Board (GPCB) for one of its subsidiary's manufacturing units, marking a significant regulatory development for the automotive components manufacturer.

Regulatory Direction Details

The GPCB issued the direction on March 10, 2026, under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974. The order affects the manufacturing unit of Setco Auto Systems Private Limited, a subsidiary of Setco Automotive, located at Baroda-Godhra Highway, Kalol, District Panchmahal, Gujarat.

Compliance Requirements

The GPCB direction mandates several immediate actions:

• Complete closure of the manufacturing unit at Kalol
• Disconnection of electricity supply (except single phase)
• Stoppage of alleged discharge of wastewater near the catchment area of River Goma

The regulatory action stems from observations made during an inspection conducted by GPCB officials on February 13, 2026. The alleged violations pertain to provisions of the Water (Prevention and Control of Pollution) Act, 1974, as amended from time to time.

Company Response and Next Steps

Setco Automotive has informed that it is currently examining the contents of the direction and evaluating appropriate legal remedies available under applicable laws. The company has committed to keeping stock exchanges informed of further developments in this matter.

The company has assured stakeholders that all manufacturing units are operated consistently in compliance with applicable laws and follow standards as per prescribed norms. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with investors and regulatory authorities.

Setco Automotive Limited has informed the stock exchanges about receiving BSE's in-principle approval for modification in the terms of non-convertible debentures issued by its subsidiary company. The approval was communicated to both BSE Limited and National Stock Exchange of India Limited on March 09, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

BSE Approval Details

BSE Limited granted in-principle approval to Setco Auto Systems Private Limited, a subsidiary of Setco Automotive Limited, for modification in the terms of its debentures. The debentures are characterized as senior, listed, rated, secured, non-cumulative, taxable, transferable, redeemable, and non-convertible in nature.

Maturity Date Extension

The primary modification approved by BSE relates to the extension of the maturity date for the non-convertible debentures. This extension provides the subsidiary with additional time to manage its debt obligations.

Compliance Requirements

The in-principle approval from BSE Limited comes with specific compliance conditions that must be fulfilled by Setco Auto Systems Private Limited. The company must ensure adherence to multiple regulatory frameworks governing listed debentures.

Key compliance requirements include:

• Compliance with applicable provisions of SEBI (LODR) Regulations, 2015
• Adherence to the Companies Act, 2013
• Compliance with other applicable laws and regulations
• Meeting conditions stipulated by BSE Limited

Corporate Communication

The intimation was signed by Hiren Vala, Company Secretary & Compliance Officer of Setco Automotive Limited, and submitted to both stock exchanges for information and record purposes. The communication emphasizes the company's commitment to maintaining transparency with stakeholders regarding significant developments in its subsidiary operations.