SMS Pharmaceuticals Limited — Important, 22-11-2024: General Updates

BSE Limited and the National Stock Exchange of India have levied fines on SMS Pharmaceuticals for non-compliance related to the composition of its Nomination and Remuneration Committee. Specifically, the Committee was not aligned with Regulation 19(1)(c), which requires that at least two-thirds of its members be Independent Directors. The oversight occurred during a reconstitution in August 2024, where an additional Non-Executive Director was inadvertently added.

The fines amount to ₹2,000 per day, applicable from August 12 to September 30, 2024, amounting to a total of approximately ₹1.1 crore. However, the company indicated that there has been no material impact on its financials or operations as no committee meetings or decisions took place during this period. The Committee was realigned to meet regulatory requirements on November 8, 2024. The company is contemplating applying for a waiver regarding the imposed fines, emphasizing its commitment to compliance with regulations.