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Lokesh Machines Limited has addressed a recent fine levied by BSE and NSE for non-compliance with Regulation 17(1) of SEBI Listing Regulations concerning the composition of its Board of Directors. The company received intimation of these fines on November 28, 2025, and duly informed the exchanges on November 29, 2025.

At a board meeting held on December 29, 2025, the board deliberated on the non-compliance and the imposed fines. The company explained that its operations in the manufacture of small arms are governed by the Arms Act, 1959, and the Arms Rules, 2016, requiring prior approval from the Ministry of Home Affairs (MHA) for any changes in directorship. This mandatory requirement, beyond the company's control, led to the temporary non-compliance with SEBI Listing Regulations.

Consequently, the board advised management to submit a waiver application to the stock exchanges, highlighting the statutory limitations imposed by the Arms Rules and MHA advisories. The company has already applied for a waiver of the total penalty of ₹7,43,400 (₹3,71,700 from BSE and ₹3,71,700 from NSE) in accordance with the Policy for Exemption of Fines levied under the SEBI SOP Circular. The application is currently under process. Lokesh Machines reiterated its commitment to high standards of corporate governance and regulatory compliance.