Suzlon Energy Shares Drop After Receiving Warnings From NSE & BSE Over Governance Issues

New Delhi: Shares of Suzlon Energy fell by as much as 4.4 per cent to Rs 76.20 in Thursday's intraday trading on the BSE. The decline came after the company received advisory and warning letters from both the National Stock Exchange (NSE) and BSE for not complying with SEBI’s listing regulations regarding disclosures.

Suzlon Share PriceAs of 11:56 AM, Suzlon's stock was down 3.85 per cent at Rs 76.66. Why NSE, BSE Warned Suzlon Energy?The warnings were related to Suzlon's handling of the resignation of Independent Director Marc Desaedeleer. On June 8, 2024, Suzlon had disclosed the resignation but did not provide necessary details required by SEBI's Listing Obligations and Disclosure Requirements (LODR). The exchanges noted that Desaedeleer's resignation letter pointed out shortcomings in Suzlon's corporate governance, particularly in terms of transparency and communication. What Is In SEBI Regulation?According to SEBI’s regulations, companies must confirm if there are no additional material reasons for an Independent Director’s resignation besides what has been mentioned. Suzlon’s initial disclosure did not include this confirmation. Furthermore, the company failed to provide details of other companies where Mr. Desaedeleer held directorships, as required.

After the resignation, Suzlon held an analyst call on June 9, 2024, to address concerns, but the company announced the call on the same day, which is against SEBI’s rule that stakeholders must be informed at least two working days in advance.The BSE has directed Suzlon to follow SEBI's rules by ensuring full disclosures about Independent Directors’ resignations and giving proper notice for meetings with analysts and investors.( Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)