Sigma Advanced Systems Limited (formerly Megasoft Limited) has received regulatory fines totaling ₹9.67 lakh from both BSE and NSE for failing to maintain the minimum board composition requirements under SEBI Listing Regulations. The company disclosed this development through a regulatory filing dated February 28, 2026.

Regulatory Action Details

Both exchanges imposed identical penalties on the company for non-compliance with Regulation 17(1) of SEBI (LODR) Regulations, 2015. The fine structure breakdown is as follows:

The company received emails from both BSE Limited and National Stock Exchange of India Limited on February 27, 2026, formally notifying about the penalty imposition.

Compliance Violation Background

The regulatory breach occurred following the resignation of Mr. Krishna Yeachuri as Director, which reduced the board composition to five directors. This fell short of the minimum requirement of six directors as mandated under Regulation 17 of SEBI (LODR) Regulations, 2015.

The violation specifically pertained to board composition requirements, with the company acknowledging that it had "fallen short of One Director" from the prescribed minimum threshold.

Remedial Action Taken

To address the compliance gap, the company appointed Mr. Cheemarla Damodar Reddy as Additional Director (Non-Executive, Non-Independent) on the Board with effect from December 22, 2025. This appointment restored the board to the required minimum composition and brought the company back into compliance with Regulation 17 provisions.

Financial and Operational Impact

The company has assessed that the regulatory fine will have no material impact on its financial position or operational activities. In its disclosure, Sigma Advanced Systems stated: "There is no material impact on financials, operations or other activities of the Company."

The company confirmed it will pay the imposed fines to both exchanges in compliance with applicable SEBI listing regulations and circulars. The penalty represents a regulatory cost arising from the temporary board composition shortfall rather than any operational or business-related issues.

Sigma Advanced Systems Limited has secured a significant ₹100 crore order from the Ministry of Defence and associated defence public sector undertakings, reinforcing its position as a key player in India's defence manufacturing ecosystem. The announcement, made on February 23, 2026, highlights the company's continued role in supporting India's strategic defence programmes across multiple critical domains.

Strategic Defence Programme Coverage

The comprehensive order encompasses multiple strategic defence applications that demonstrate the breadth of Sigma's capabilities:

The scope of work covers built-to-spec systems, control electronics, and actuation solutions that meet the stringent reliability standards required for mission-critical defence applications.

Key Customer Partnerships

Sigma will execute these orders for India's leading defence organizations, strengthening its partnerships with established institutions:

• Bharat Dynamics Limited (BDL)
• Hindustan Aeronautics Limited (HAL)
• Defence Research and Development Organisation (DRDO) establishments

These partnerships underscore the long qualification cycles and reliability standards that characterize the defence electronics sector, where customer reliance on proven suppliers remains paramount.

Leadership Perspective

Commenting on the development, Sunil Kalidindi, Chief Executive Officer of Sigma Advanced Systems, stated: "These orders demonstrate the continued confidence of India's defence ecosystem in Sigma's engineering, manufacturing capabilities, and ability to deliver complex systems for mission-critical applications. Sigma remains committed to strengthening indigenous defence capability through reliable delivery, technology depth, and sustained programme support."

Company Capabilities and Infrastructure

With more than three decades of experience in indigenous defence programmes, Sigma Advanced Systems has established itself as a comprehensive solutions provider. The company's Hyderabad facility combines deep R&D expertise with design, manufacturing, and environmental testing capabilities at a single location. This integrated approach enables support for long-cycle defence programmes from development through production phases.

Sigma's product portfolio spans avionics, torpedo systems, radar equipment, communication solutions, and embedded electronics designed for high-reliability applications. The company operates as a globally integrated aerospace and defence manufacturer with presence across India and the UK, with expansion underway in the United States.

These latest orders represent a meaningful advancement for Sigma Advanced Systems, highlighting both the immediate business impact and the technical trust that customers place in the company's ability to deliver complex, mission-critical systems that support India's ongoing defence modernisation and indigenisation initiatives.