Why NSE and BSE fined Garden Reach Shipbuilders ₹20L
29 Nov 2025

Garden Reach Shipbuilders and Engineers Ltd (GRSE) has been fined ₹19.54 lakh by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for failing to comply with corporate governance norms.

The violations were flagged during the quarter ended September 30, 2025.

In a regulatory filing, GRSE admitted that it had received notices from both exchanges over non-compliance with several provisions under SEBI's listing obligations.

Specific regulations violated by GRSE
Regulation breach

The violations flagged by NSE and BSE pertain to the mandatory presence of the independent directors, including a woman independent director.

They also include the constitution of an audit committee and a nomination and remuneration committee.

Each exchange has imposed a fine of ₹9.77 lakh, inclusive of GST, on GRSE for these lapses.

GRSE seeks penalty waiver
Waiver request

In response to the notices, GRSE has sought a waiver of the penalties.

The firm clarified that as a Central Public Sector Enterprise under the Ministry of Defence, appointments to its board are made by the Government of India through Presidential Orders.

It said that non-compliance was due to delay in appointing required directors by the government and is "beyond its control."

GRSE actively pursuing director appointments
Compliance efforts

GRSE has been actively pursuing the Ministry of Defence, its promoter, to fast-track the appointment of independent directors. The company is committed to ensuring full compliance with SEBI's corporate governance norms.