BSE Ltd vide email communication dated February 27, 2026 imposed fine of Rs.9,88,840/- on the Corporation for non-compliance with Corporate Governance Regulations under SEBI (LODR) Regulations, ....
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BSE has imposed a total fine of Rs. 9,88,840 (including GST) on Gujarat State Financial Corporation for failing to meet corporate governance requirements for the quarter ended December 31, 2025. The non-compliance is due to the absence of independent directors on the Board and its committees — a requirement under SEBI's LODR Regulations. The fine is split across four areas: Rs. 5,42,800 for Board composition (Reg. 17(1)), Rs. 11,800 for meeting quorum (Reg. 17(2A)), Rs. 2,17,120 for Audit Committee constitution (Reg. 18(1)), and Rs. 2,17,120 for Nomination and Remuneration Committee (Reg. 19(1)/19(2)). The Corporation states that, as a body established under the State Financial Corporations Act, 1951, it cannot appoint independent directors because all directors are shareholder nominees. It had earlier received exemptions under LODR Regulation 15(2)(b) before this proviso was omitted in September 2021. The Corporation is pursuing amendments to the SFCs Act with the Government and has requested BSE to waive the fine, noting it was previously waived on similar grounds for the September 2020 quarter.
The fine amount is small and the Corporation has stated it does not envisage any material impact. However, the recurring nature of these penalties highlights a structural governance gap that may continue to attract fines until legislative amendments are made. Shareholders should note this is a technical compliance issue rather than a financial or operational concern.