Panchmahal Steel Faces ₹1.32 Lakh Fine Over Nomination Committee Compliance, Seeks Penalty Waiver

Panchmahal Steel Ltd. has been fined ₹1,32,160 for failing to comply with SEBI's Listing Obligations and Disclosure Requirements (LODR) regulations. The company did not meet the required composition for its Nomination and Remuneration Committee (NRC) during the financial year ending March 31, 2025.

Specifically, the company failed to ensure that two-thirds of its NRC members were independent directors, a standard mandated by SEBI rules for that period. This oversight has resulted in the levied penalty.

In response to the compliance issue, Panchmahal Steel reconstituted its Nomination and Remuneration Committee on February 26, 2025, to meet the independent director ratio. The company has also submitted an application to the regulatory authority seeking a waiver for the ₹1,32,160 fine. An application fee of ₹11,800 has been paid towards this request.

The outcome of the waiver application is currently pending. If the waiver is not granted, the company will need to pay the full penalty amount.

Panchmahal Steel operates as a producer of stainless steel long products. Its competitors in the market include major steel manufacturers such as Tata Steel Ltd., JSW Steel Ltd., and Jindal Stainless Ltd., as well as smaller companies like India Steel Works Ltd.

In previous regulatory matters, the company has been involved in GST appeals before the Gujarat High Court concerning CENVAT Credit claims. Separately, an Income Tax demand of ₹12.20 crores for Assessment Years 2010-11 and 2011-12 was fully deleted by the CIT (Appeals) on July 23, 2025. The company's Chief Financial Officer, Nilesh Shah, also resigned, with his tenure ending on March 5, 2026.

Investors will be closely watching the decision on the penalty waiver and Panchmahal Steel's continued adherence to SEBI's board composition regulations.