News Stocks Zenith Exports Limited Faces Rs 7.91 Lakh Penalty from NSE and BSE for Board Composition Non-ComplianceZenith Exports Limited Faces Rs 7.91 Lakh Penalty from NSE and BSE for Board Composition Non-Compliance
Zenith Exports Limited faces a combined penalty of Rs 7.91 lakh from NSE and BSE for violating board composition requirements during Q3 FY26. Each exchange imposed Rs 3,95,300 (including GST) for 67 days of non-compliance with Regulation 17(1) of SEBI LODR Regulations. The company is seeking suitable board candidates and plans to request fine waivers from both exchanges.
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Zenith Exports Limited has received penalty notices from both the National Stock Exchange of India Limited (NSE) and BSE Limited for non-compliance with regulatory requirements during the quarter ended December 31, 2025. The company disclosed this development through a regulatory filing dated February 28, 2026, pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
Penalty Details and Financial Impact
Both exchanges have imposed identical fines on the company for alleged violations. The penalty structure shows the significant financial implications of regulatory non-compliance:
| Exchange | Basic Fine (Rs) | GST @ 18% (Rs) | Total Fine (Rs) |
|---|---|---|---|
| NSE | 3,35,000 | 60,300 | 3,95,300 |
| BSE | 3,35,000 | 60,300 | 3,95,300 |
| Total Penalty | 6,70,000 | 1,20,600 | 7,90,600 |
The fines are calculated at Rs 5,000 per day for 67 days of non-compliance, resulting in a basic penalty of Rs 3,35,000 from each exchange before the addition of GST.
Nature of Non-Compliance
The penalty notices specifically cite violation of Regulation 17(1) of the SEBI LODR Regulations, which pertains to board composition requirements including the failure to appoint requisite directors. The company received the penalty notices via email on February 27, 2026, at 17:54 IST from BSE and 22:00 IST from NSE respectively.
| Parameter | Details |
|---|---|
| Regulation Violated | 17(1) of SEBI LODR Regulations, 2015 |
| Nature of Violation | Board composition non-compliance |
| Non-compliance Period | 67 days during Q3 FY26 |
| Fine Per Day | Rs 5,000 |
Company's Response and Remedial Actions
Zenith Exports has acknowledged the penalties and outlined its response strategy. The company stated that there is no material impact on its financials, operations, or other activities due to this non-compliance. Management is actively seeking suitable candidates to fill board vacancies, taking into consideration that a resolution for appointment of an Independent Director was previously defeated by dissenting shareholders.
The company plans to submit waiver request letters to both stock exchanges seeking relief from the imposed fines. As per exchange requirements, the company must achieve compliance before any waiver application can be processed, and a non-refundable processing fee of Rs 10,000 plus 18% GST may be applicable if the fine amount exceeds Rs 5,000 exclusive of GST.
Regulatory Consequences and Timeline
The exchanges have provided a 15-day timeline from the notice date for fine payment, failing which they may initiate severe actions including:
- Freezing of entire shareholding of promoters in the company and other securities in their demat accounts
- Shifting of trading in company securities to 'Trade for Trade' basis
- Potential transfer to Z category for consecutive defaults
The company is also required to place this matter before the Board of Directors in the next board meeting and inform the exchanges about the board's comments for dissemination.
Source: None/Company/INE058B01018/b8241926-61dd-4f2a-91fd-abd2ced353b4.pdf
Historical Stock Returns for Zenith Exports
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.48% | +4.67% | +4.20% | -12.23% | -15.43% | +196.84% |
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