Suzlon Energy has received a warning letter from both the National Stock Exchange (NSE) and BSE Ltd for not complying with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements. The warnings pertain to the company’s management of disclosures related to the resignation of Independent Director Marc Desaedeleer, according to a regulatory filing. Marc Desaedeleer resigned from his position on June 8, 2024. The BSE and NSE pointed out in their letters that the disclosure regarding the resignation did not confirm the material reasons behind it, despite the company stating otherwise. Desaedeleer’s resignation letter highlighted issues in corporate governance. The exchanges noted that the disclosure lacked details about the listed entities where the resigning director held directorships, including the type of directorship and board committee memberships, if any. Additionally, the company did not inform the exchanges in a timely manner about an analyst call that occurred the following day, which is against SEBI regulations that require companies to notify stock exchanges at least two working days in advance. In their advisory, the NSE and BSE emphasized the need for compliance with corporate governance best practices and SEBI regulations, urging Suzlon to be more cautious and ensure proper compliance in future disclosures. The exchanges also cautioned that additional infractions would lead to more severe actions. Suzlon stated that there is no significant effect on the company’s finances, operations, or other activities. The stock closed at Rs 79.73, a decrease of 0.45% on the BSE on Tuesday. (You can now join our ETMarkets WhatsApp channel)
