Hindustan Organic Chemicals500449Regulatory penalty

Board comments on BSE penalty of Rs.5,05,000/- for Q1 FY 2026-27 LODR non-compliance

BSE has imposed penalties of Rs.5,05,000/- plus applicable GST on the company for the quarter ended June 30, 2026.

By ScoutQuest · Wed 4 Nov 2026, 5:01 PM IST · 2 min read

Penalty Amount: Rs.5,05,000/- plus applicable GST
Penalty Period: quarter ended June 30, 2026
Non-compliance Regulations: Regulation 17(1) (composition of the Board of Directors) and Regulation 20(2)/(2A) (constitution of the stakeholder relationship…

BSE informed the company by e-mails dated 25.08.2026 that penalties of Rs.5,05,000/- plus applicable GST have been imposed.
The penalties cover the quarter ended June 30, 2026.
Two grounds are cited: non-compliance with Regulation 17(1) on composition of the Board of Directors, and non-compliance with Regulation 20(2)/(2A) on the constitution of the stakeholder relationship committee.
BSE asked that the matter be placed before the Board of Directors and the Board's comments be disseminated on the Exchange portal.
The matter was reported to the Board at its 429th Board meeting held on 04.11.2026.

The Board noted that appointment of Directors to the Board falls within the purview of the Ministry of Chemicals and Fertilizers, Department of Chemicals and Petrochemicals, Government of India.
On Regulation 17(1) and Regulations 20(2)/(2A), the Board stated the non-compliance was attributable to circumstances beyond the direct control of the Company.
On Regulations 20(2) and 20(2A) specifically, the Board noted the lapse arose due to non-availability of requisite Independent Directors on the Board, and that this was beyond the reasonable control of the Company.

A stock exchange can levy a fine when a listed company does not meet the board-composition and committee rules set under SEBI's LODR regulations.
Here the shortfall is on two counts - the make-up of the Board and the constitution of the stakeholder relationship committee, which handles investor grievances.
The company has recorded its side: that director appointments are decided by the government ministry, and that the committee issue followed from the absence of the required Independent Directors.
The communication is a compliance update placing the penalty and the Board's comments on record for shareholders.

Whether the Board composition and the stakeholder relationship committee are brought in line with the regulations over time, since that is the underlying issue the penalty relates to.
The financial effect, which on the face of the update is the penalty amount of Rs.5,05,000/- plus applicable GST.

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