Intimation of Penalty levied under Reg 30 of the SEBI(LODR) Regulation 2015.
Awaiting price reaction for this filing.
Burnpur Cement has been fined Rs. 1,55,760 (including GST) by the National Stock Exchange (NSE) for non-compliance with SEBI's LODR Regulation 17(1A), which requires a special shareholder resolution to continue a non-executive independent director beyond 75 years of age. The penalty relates to the quarter ended June 2025, and the director in question is Mrs. Poonam Srivastava. The company argues that since its management has been taken over by UV Asset Reconstruction Company (UVARCL) under the SARFAESI Act, the SARFAESI provisions override the LODR requirement, allowing the director to continue without shareholder approval. The company has obtained a legal opinion from Shardul Amarchand Mangaldas supporting this position and is reviewing further legal steps. This filing also highlights that Burnpur Cement is already a financially distressed company with nil operations and revenue in FY 2024-25, under ARC management, and the fine will further strain its finances.
This is a relatively small monetary fine but signals ongoing compliance issues at a company that is already financially distressed with zero operations and under ARC control. For shareholders, this adds to the negative backdrop — the stock is likely to be viewed as high-risk penny stock territory with potential for further regulatory and governance challenges.