Shares of Suzlon Energy fell 4.4 percent to Rs 76.20 per share on the BSE during Thursday’s intraday trade. This came after Suzlon Energy received advisory and warning letters from both the National Stock Exchange (NSE) and BSE for non-compliance with SEBI’s listing obligations and disclosure requirements (LODR). The warnings relate to the way the company handles announcements about the dismissal of independent director Marc Desaedeleer.
The letter from the stock exchanges stated that Desaedeleer’s resignation letter indicated that corporate governance standards at Suzlon had not met expectations, particularly in terms of openness and transparency in communications.
The company’s initial disclosure did not contain any confirmation regarding material reasons for the dismissal, contrary to the requirements laid down in SEBI LODR Regulation 30, which stipulates that independent directors must confirm that there are no additional material reasons beyond those stated in their resignation letter .
In addition, the disclosure did not provide information about other listed entities where Mr. Desaedeleer holds directorships, including the categories of directorships and any memberships of board committees, according to the contents of the letter.
The BSE emphasized that this shorter notice period is contrary to Regulation 30, sub-paragraph 15(a) of the SEBI LODR.
The BSE has directed Suzlon Energy to comply with SEBI LODR requirements by ensuring full disclosure of resignations of independent directors, including confirmation of material reasons and details of other directorships. In addition, the company must inform analysts and institutional investors at least two business days in advance of meetings.
At 11:56 am, the company’s share price fell 3.85 percent to Rs 76.66 apiece on the BSE. In comparison, the BSE’s Sensex fell 1.48 percent at the 83,019 level.
First publication: Oct 3, 2024 | 12:06 pm IST