Transgene Biotech Limited has informed investors about receiving a prohibitory order from the Securities and Exchange Board of India (SEBI) regarding recovery proceedings for an unpaid penalty of Rs.38 lacs. The disclosure was made in compliance with Clause 36 of the listing agreement with BSE Limited on February 3, 2026.

SEBI Recovery Order Details

The company received communication from the Recovery Officer at SEBI's Southern Regional Office in Chennai dated January 19, 2026, regarding Order No. RRD/SRO/1166/2026/1. The order was issued under Rule 16 and 48 of the Second Schedule to the Income-tax Act, 1961, read with Section 28A of the Securities and Exchange Board of India Act, 1992.

Asset Freeze and Operational Impact

The prohibitory order has imposed severe restrictions on Transgene Biotech Limited's operations. The company is now prohibited from disposing, transferring, alienating, or charging all immovable and movable properties. Additionally, all bank accounts have been frozen, with penal interest being imposed for the delay in penalty payment.

The asset freeze has created significant operational challenges:

• Complete paralysis of salary payments to employees
• Suspension of all business activities
• Inability to conduct routine financial transactions
• Operational standstill across all company functions

Pending Appeal Status

Transgene Biotech Limited has emphasized that the recovery proceedings were initiated despite having filed an appeal with the Securities Appellate Tribunal (SAT) in Mumbai on October 7, 2022. The company's appeal challenging the original SEBI adjudication order dated June 27, 2022, remains undisposed by the tribunal.

Regulatory Compliance

The disclosure was made by Dr. K. Koteswara Rao, Managing Director of Transgene Biotech Limited, in his letter to the General Manager of the Department of Surveillance & Supervision at BSE Limited. The communication was made in strict compliance with Clause 36 of the listing agreement, ensuring transparency with investors regarding the company's regulatory challenges.

The company has expressed concern that the prohibitory actions were implemented despite the pending appeal, which has resulted in complete operational paralysis affecting all stakeholders including employees and business operations.

Transgene Biotek Limited , a biotechnology company, has announced its financial results for the quarter ended September 30, 2025, along with several significant board decisions. The company's performance and corporate actions indicate ongoing challenges and strategic moves.

Financial Performance

Transgene Biotek reported a net loss of Rs. 38.84 lakhs for the quarter ended September 30, 2025. This loss comes despite a modest revenue from operations of Rs. 5.28 lakhs for the same period. The company's total expenses for the quarter stood at Rs. 44.12 lakhs, significantly outweighing its income.

Key Financial Metrics

The company's financial position remains challenging, with the balance sheet showing a negative 'Other Equity' of Rs. 8,413.90 lakhs as of September 30, 2025.

Board Approvals and Corporate Actions

In a board meeting held on November 14, 2025, Transgene Biotek's directors made several key decisions:

1. Annual General Meeting (AGM): The company's 35th AGM is scheduled for December 30, 2025, to be held through video conferencing.

2. Director Reappointments: The board approved the following reappointments, subject to shareholder approval:

   • Dr. K. Koteswara Rao as Chairman & Managing Director for one year
   • Mrs. Sujana Kadiam, Mr. Santhosh Kumar, and Mrs. Swetha Marri as Independent Directors, each for a five-year term

3. E-voting: The company appointed Mrs. Geeta Servani as the scrutinizer for e-voting, with the remote e-voting period set from December 27 to December 29, 2025.

4. Book Closure: The Register of Members and Share Transfer Books will remain closed from December 24 to December 30, 2025.

Ongoing Legal Challenges

Transgene Biotek continues to face legal hurdles that may impact its operations:

1. The matter at the Securities Appellate Tribunal (SAT) in Mumbai is ongoing, with the next hearing scheduled for January 9, 2026.
2. A hearing at the Appellate Tribunal in New Delhi is set for January 5, 2026.
3. The company is addressing an appeal filed by Babaji Nethralayya at the National Company Law Tribunal (NCLT) Hyderabad bench.

These legal proceedings, coupled with the company's financial performance, underscore the challenges Transgene Biotek is currently navigating.

Looking Ahead

As Transgene Biotek grapples with financial losses and legal issues, the reappointment of key directors suggests a focus on maintaining leadership continuity. The company's ability to address its financial challenges and resolve ongoing legal matters will likely be crucial for its future prospects.