Yash Chemex Limited has received a penalty of ₹2,00,000 from the Securities and Exchange Board of India (SEBI) for violations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations 2015. The penalty was imposed through SEBI Order Ref No: Order/SM/BK/2025-26/31966 for delayed disclosure violations related to subsidiary company acquisitions.

Background of SEBI Proceedings

The regulatory action began with a show cause notice dated July 8, 2025, which the company received on July 9, 2025, through email from the General Manager & Adjudicating Officer, Enquiries and Adjudication Department-3, SEBI Mumbai. The notice addressed violations of Regulation 30(2) read with 30(6) and Clause 1 of Para A of Schedule III to SEBI LODR Regulations 2015.

Nature of Violations

The violations pertained to delayed disclosures regarding acquisitions made by the company in its subsidiary, Yasons Chemex Care Limited, an unlisted entity. These transactions occurred during the period from October 2017 to December 2022, but were not disclosed within the prescribed timeframe under SEBI regulations.

Company Response and Proceedings

Following the show cause notice, Yash Chemex engaged actively with SEBI's proceedings. The company made its initial submission on November 28, 2025, addressing the allegations raised in the notice. Managing Director Pritesh Y. Shah personally attended the hearing conducted through video conferencing on December 18, 2025, demonstrating the company's commitment to addressing the regulatory concerns.

The company further strengthened its position by submitting additional written representations on December 23, 2025, providing comprehensive responses to SEBI's queries and concerns regarding the delayed disclosures.

SEBI Order and Penalty

After considering the company's submissions and the hearing proceedings, SEBI imposed the penalty under Section 15A(b) of the SEBI Act, 1992. The regulatory authority determined that the violations warranted a monetary penalty of ₹2,00,000.

Disclosure Delay and Administrative Issues

The company's revised disclosure, submitted on January 20, 2026, explained the delay in reporting the SEBI order. The secretarial department official was unavailable from January 14 to January 18, 2026, with no access to the official email account. The official became aware of the adjudication order only on January 19, 2026, and the disclosure was made promptly on the same day.

The company has committed to comply with all directions given in the SEBI order and has provided comprehensive details as required under Regulation 30 of the SEBI LODR Regulations 2015, in accordance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Yash Chemex Limited announced the re-appointment of Mr. Rushabh Anilkumar Shah as Independent Director for a second consecutive five-year term. The board meeting held on December 27, 2025, approved this decision based on the recommendation of the company's Nomination and Remuneration Committee.

Board Meeting Outcome

The board meeting commenced at 10:30 AM IST and concluded at 11:00 AM IST on Saturday, December 27, 2025. The decision was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015. The company has submitted the official outcome to BSE Limited as required under regulatory disclosure norms.

Re-appointment Details

The comprehensive details of Mr. Shah's re-appointment are presented below:

Director Profile and Experience

Mr. Rushabh Anilkumar Shah brings substantial expertise to the board with his comprehensive educational background and professional experience. His qualifications and experience include:

Regulatory Compliance

The company confirmed that Mr. Shah meets all regulatory requirements for the re-appointment. He is not disqualified from serving as an Independent Director under Section 164 of the Companies Act 2013 and has provided his consent to continue in this role. As required by BSE circular no. LIST/COMP/14/2018-19 dated June 20, 2018, he is not debarred from holding the office of director by any SEBI order or other authority.

The company also disclosed that Mr. Shah is not related to any other directors of the company, maintaining the independence required for his position.

Next Steps

The board will take necessary steps to obtain shareholder approval for this re-appointment through an Extraordinary General Meeting or Postal Ballot within due course of time. The re-appointment is subject to this shareholder approval as per regulatory requirements.