Balmer Lawrie fined for board composition non-compliance

Balmer Lawrie & Co. Ltd. announced that BSE Limited and National Stock Exchange of India Limited have jointly imposed fines totaling INR 10,90,320 (inclusive of GST) for non-compliance with certain Listing Regulations. The fines, communicated via emails dated November 28, 2025, are for the quarter ended September 30, 2025.

The non-compliance stems from Regulation 17(1) of the Listing Regulations, as the board of directors did not comprise at least 50% non-executive directors due to an insufficient number of independent directors/non-executive directors. Additionally, the company was also fined regarding Regulation 19(1)/19(2) related to the Nomination and Remuneration Committee. However, Balmer Lawrie stated that all members of this committee were non-executive directors and two-thirds were independent directors, with an independent chairperson, following a government nominee director appointment on July 1, 2025.

Balmer Lawrie, a Central Public Sector Enterprise, noted that the composition of its board and committees is dependent on directions from its Administrative Ministry, the Ministry of Petroleum & Natural Gas. The company asserts these non-compliances are due to factors beyond its control and has requested a waiver of the fines from both BSE Limited and the National Stock Exchange of India. The immediate financial impact is limited to the total fine amount.