Suzlon Energy gets warning letters from exchanges over non-compliance in disclosures

Suzlon Energy has been issued an advisory cum warning letter from both the National Stock Exchange (NSE) and BSE Ltd, regarding non-compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements.

These warnings are issued in respect to the company’s handling of disclosures related to the resignation of Independent Director, Marc Desaedeleer, regulatory filing by the company said.

On June 8, 2024, Marc Desaedeleer, an independent director of Suzlon Energy’s board, resigned.

“It was observed that the disclosure for the resignation letter of the independent director didn’t have any confirmation for the material reason, however, the company in its disclosure had provided such confirmation,” BSE and NSE mentioned in their warning letters.

Desaedeleer’s resignation letter pointed out lapses in corporate governance.

“The details related to names of listed entities in which the resigning director holds directorships, indicating the category of directorship and membership of board committees, if any, was not provided in the said disclosure,” the exchanges added.Moreover, the company also failed to inform the exchanges promptly about an analyst call held the next day.SEBI mandates that companies must inform stock exchanges of such events at least two working days in advance.

In the advisory, the NSE and BSE stressed the importance of adhering to corporate governance best practices and SEBI regulations, warning Suzlon to exercise greater caution and ensure compliance in future disclosures. The exchanges further warned that any further lapses would result in stricter actions.

Suzlon said there is no material impact on the financial, operation, or other activities of the company.

The scrip ended at Rs 79.73, down 0.45% on the BSE on Tuesday.

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