Tax & Penalty29 May 2026, 12:37 pm
GSFC Fined ₹9.67 Lakhs by BSE for Governance Non-Compliance
AI Summary
Gujarat State Financial Corporation (GSFC) has been fined ₹9,67,600 by BSE Ltd for non-compliance with Corporate Governance requirements under SEBI (LODR) Regulations, 2015 for the quarter ended March 31, 2026. The non-compliance relates to regulations 17 (1), 17 (2A), 18 (I) and 19 (1)/19(2) regarding the non-appointment of independent directors and quorum of meetings. GSFC contends that its composition of the Board is governed by the State Financial Corporations Act, 1951, which does not provide for independent directors. GSFC has requested BSE to reconsider the fine, stating no impact on financial operations is envisaged.
Key Highlights
- BSE imposed a fine of ₹9,67,600 on GSFC for non-compliance with Corporate Governance norms.
- The fine relates to the quarter ended March 31, 2026, due to non-appointment of independent directors.
- GSFC cites conflict with the State Financial Corporations Act, 1951, regarding independent director appointments.
- GSFC has requested BSE to waive the fine, asserting no impact on its financial operations.
- GSFC is awaiting amendments to the SFCs Act to align with SEBI (LODR) Regulations.
Price Impact
More from GUJSTATFIN