Lokesh Machines seeks waiver for ₹7.4 lakh fine on board composition non-compliance
Lokesh Machines Limited's board met on December 29, 2025, to discuss fines levied by BSE and NSE for board composition non-compliance. The company has applied for a waiver of ₹7,43,400 in fines, citing mandatory MHA approvals for directorship changes due to its arms manufacturing business. The waiver application is under process.
The fine amount is relatively small compared to the company's overall operations, and the issue is related to a procedural compliance matter for which a waiver is being sought. The direct impact on business operations or financials is likely to be minimal.
The announcement details a regulatory issue and a company's response to it. While the company is seeking a waiver, the initial non-compliance and fine suggest a neutral stance as there is no immediate positive or negative financial impact disclosed.
Lokesh Machines Limited has addressed a recent fine levied by BSE and NSE for non-compliance with Regulation 17(1) of SEBI Listing Regulations concerning the composition of its Board of Directors. The company received intimation of these fines on November 28, 2025, and duly informed the exchanges on November 29, 2025.
At a board meeting held on December 29, 2025, the board deliberated on the non-compliance and the imposed fines. The company explained that its operations in the manufacture of small arms are governed by the Arms Act, 1959, and the Arms Rules, 2016, requiring prior approval from the Ministry of Home Affairs (MHA) for any changes in directorship. This mandatory requirement, beyond the company's control, led to the temporary non-compliance with SEBI Listing Regulations.
Consequently, the board advised management to submit a waiver application to the stock exchanges, highlighting the statutory limitations imposed by the Arms Rules and MHA advisories. The company has already applied for a waiver of the total penalty of ₹7,43,400 (₹3,71,700 from BSE and ₹3,71,700 from NSE) in accordance with the Policy for Exemption of Fines levied under the SEBI SOP Circular. The application is currently under process. Lokesh Machines reiterated its commitment to high standards of corporate governance and regulatory compliance.
What to do with a filing like this
Lokesh Machines Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Lokesh Machines Limited. Read the original for the full detail.