HUDCO Seeks Waiver of NSE, BSE Fines Over Board Composition Non-Compliance

Key Takeaways

• HUDCO's board has asked the company to seek waiver of fines imposed by NSE and BSE for corporate governance non-compliance during the June 2026 quarter. 
• Each exchange's enclosed communication shows a total fine of ₹11.72 lakh, including GST, based on the position as of August 25, 2026. 
• HUDCO said the appointment of independent directors rests with the President of India through the administrative ministry and is therefore outside the company's direct control. 

HUDCO Board Seeks Waiver of Exchange Fines 

Housing and Urban Development Corporation Limited, or HUDCO, has decided to seek waiver of fines levied by NSE and BSE over non-compliance with board and committee composition requirements. 

In a disclosure dated October 22, HUDCO said its board reviewed the penalties imposed for the quarter ended June 30, 2026. The board asked the company to continue following up with the administrative ministry and to approach the stock exchanges for waiver of the fines. 

The NSE notice enclosed with the disclosure shows a basic fine of ₹9.93 lakh and GST of ₹1.79 lakh, taking the total amount to ₹11.72 lakh. The BSE communication included with HUDCO's filing shows the same total. 

Where the HUDCO Fine Came From 

The largest component was a ₹4.55 lakh basic fine under Regulation 17(1) of the SEBI Listing Obligations and Disclosure Requirements Regulations, relating to board composition. 

Another ₹1.70 lakh each was imposed for non-compliance with provisions covering the audit committee and the nomination and remuneration committee. 

Fines of ₹94,000 each related to the composition of the stakeholder relationship committee and risk management committee. A further ₹10,000 was levied in connection with the quorum requirement for a board meeting. 

The amounts are before GST. 

HUDCO's corporate governance disclosure for June 30 gives more detail on why these requirements were affected. At that date, its board consisted of five directors: three functional directors, including the chairman and managing director, and two government nominee directors. 

There were no independent directors on the board, against a stated requirement of five. 

The company said the tenure of two independent directors ended on April 6, 2026, while another independent director completed his tenure on May 14. 

HUDCO Says Director Appointments Are Outside Its Control 

HUDCO has argued that, as a government company, it does not independently control these appointments. 

The power to appoint directors rests with the President of India and is exercised through the Ministry of Housing and Urban Affairs. HUDCO said the ministry has already been requested to appoint the required independent directors. 

The October disclosure is not HUDCO's first waiver request relating to board composition. In April 2026, the company disclosed a similar board decision after fines were imposed for the December 2025 quarter. It gave the same broad reason, that appointment of the required independent directors was outside the company's direct control. 

The latest filing records HUDCO's request and the board's comments. It does not state that NSE or BSE has granted the waiver.