Bannari Amman Spinning Mills Limited has informed the Exchange - Communication of Information Under Regulation 30 of SEBI(LODR) Regulations, 2015
BASML · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Bannari Amman Spinning Mills has informed the stock exchanges about fines received from both NSE and BSE for non-compliance with SEBI LODR Regulation 17(1A). The rule requires listed companies to get prior shareholder approval through a Special Resolution before appointing a Non-Executive Independent Director who has already turned 75 years of age. The company failed to do this for its director Mr. Shanmugavelayutham. As a penalty, both exchanges have levied a fine of Rs. 68,000 each (plus 18% GST), taking the total to roughly Rs. 1.6 lakh. The company has said it will pay the amount within the 15-day deadline and file an appeal seeking a waiver. The Board will also review the matter in its next meeting. Management has stated there is no material impact on the company's finances, operations, or other activities.
The financial impact is negligible (under Rs. 2 lakh in fines), so shareholders are unlikely to see any meaningful effect on earnings or stock price. However, this is a governance and compliance red flag — the company did not follow a basic SEBI rule about director appointments, which investors may view as a weakness in board-level compliance discipline.