Board Comments on fine levied by the Exchange
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NSE and BSE each imposed a fine of Rs. 8,28,360 (including 18% GST) on Engineers India Limited for non-compliance with SEBI Listing Regulations during the quarter ending December 31, 2024. The violations related to the non-appointment of independent directors (including a woman director) and gaps in statutory committee composition, specifically under Regulations 17(1), 18(1), 19(1)/(2), 20(2)/(2A) and 21(2) of the SEBI LODR Regulations, 2015. EIL explained that as a Public Sector Undertaking, director appointments are controlled by the Administrative Ministry (MoPNG), and two Non-Official Independent Directors were re-appointed on March 28, 2025. The Board has formally requested the Exchanges to waive the fine, stating the non-compliance was beyond the company's control.
The fine is financially negligible (around Rs 16.5 lakh combined from both exchanges) and the company has already initiated remedial action with the re-appointment of independent directors. Investors are unlikely to see any material impact on the stock, though the episode highlights governance compliance gaps typical of PSUs awaiting government appointments.