Boards Comment on fines levied by Exchnages.
Awaiting price reaction for this filing.
Burnpur Cement's Board has rejected the fines of Rs. 1,55,760 (including GST) imposed by NSE and BSE for the quarter ended June 2025 under Regulation 17(1A) of SEBI (LODR) Regulations, 2015. The penalty relates to the continuation of Mrs. Poonam Srivastava as an Independent Director beyond the age of 75 years without obtaining shareholder approval through a Special Resolution. The Board argues that the fine is unfair because the company's management has been taken over by UV Asset Reconstruction Limited (UVARCL) under the SARFAESI Act, and Section 15(3)(a) of that Act prohibits shareholders from nominating or appointing directors once management is with a secured creditor. UVARCL had already approved her continuation in a letter dated April 24, 2025. The company is filing an appeal before the Securities Appellate Tribunal (SAT) and will withhold payment until SAT delivers its final order.
The company is contesting the penalty rather than paying it, which could lead to escalation of regulatory action, including freezing of promoter shareholdings or potential transfer to the Z group with risk of trading suspension if non-compliance continues for a second consecutive quarter. Shareholders face near-term uncertainty around governance compliance and possible trading restrictions, though the company has a legal defense based on the SARFAESI Act overriding provisions.