BSE vide email communication dated August 29, 2025 imposed fine of Rs.11,92,980/- on the Corporation for non-compliance with SEBI (LODR) Regulations, 2015 intimation thereof is attached.
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BSE has imposed a total fine of Rs. 11,92,980 on Gujarat State Financial Corporation (GSFC) for non-compliance with SEBI (LODR) Regulations, 2015 for the quarter ended June 30, 2025. The penalties relate to absence of Independent Directors on the Board and its committees — specifically under regulations covering Board composition (Rs. 5.37 lakh), Audit Committee (Rs. 2.15 lakh), Nomination and Remuneration Committee (Rs. 2.15 lakh), and Stakeholders Relationship Committee (Rs. 2.15 lakh), plus Rs. 11,800 for board meeting quorum. GSFC explained that under the State Financial Corporations Act, 1951, all Directors are shareholder nominees, making it legally impossible to appoint Independent Directors. The Corporation has been pursuing amendments to the SFCs Act with the Government since December 2021 and has requested BSE to waive fines until the Act is suitably amended. GSFC also contested the Rs. 11,800 fine on quorum as inadvertent, since it is not among the top 2000 listed entities to which that regulation applies.
The fine amount is relatively small and the issue is a recurring, structural compliance gap stemming from conflict between the SFCs Act and SEBI LODR norms — unlikely to materially affect the stock price but highlights ongoing governance risk until legislative amendments are made.