Central Depository Services India Ltd

The Regulatory departments constituted to strengthen the regulatory functions and ensuring compliance with the regulatory requirements, are headed by senior officials of the Company, who report to the MD & CEO. [...] National Stock Exchange of India Limited (NSE) no. NSE/LIST-SOP/CG/FINES/0468 dated July 02, 2020 informed the Company about levy of fine of ` 1,80,000/- plus applicable taxes for being delayed compliant/ non-compliant with Regulation 18(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (LODR). The Company made submission to NSE that the Company had constituted the Audit Committee with 3 Independent Directors and 02 Non-Executive Directors and that the Regulation 18 of the LODR requires that atleast 2/3rd of the members of the Company be independent directors. It was also informed that basis telephonic advice from NSE on April 29, 2020, the Company had immediately reconstituted the Audit Committee on April 30,2020 . In compliance with the SOPs laid down by SEBI in this regard, the Company paid the amount of fine on 17.07.2020 and requested NSE for personal hearing for the purpose of waiver of the penalty which is yet to take place. It should be noted that the Company believes and promotes the best practices of corporate governance, hence had immediately acted on the advice of NSE to reconstitute the Audit Committee. Also, the Company has paid the aforementioned amount of fine within the given time frame.

(ii) In terms of the Regulation 18(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company had three Independent Directors as against the requirement of having two-third of the total number of Members i.e. 3.33 rounded off to 4 as there were five members in the Audit Committee of the Company. The Company appointed one additional Independent Director in the Audit Committee on April 30, 2020 to comply with the provisions of the Regulation 18(1). The National Stock Exchange of India Limited (NSE) vide letter dated August 20, 2020 had levied fine to the Company for delayed/non compliance of Regulation 18(1) w.r.t. composition of the Audit Committee for a period of 29 days. Further, during the reporting period i.e. FY 2020-21, no meeting of the Audit Committee was held before April 30, 2020."
"Principle 7 (P7): Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner [...] 2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others) Yes, we have received several suggestions from trade bodies and associations for our stakeholder's and company's growth. Some of them are listed below: a. eVoting b. Go green movements c. Single demat account for all financial assets d. Sending annual reports of our company through email