3M India Limited has clarified the circumstances leading to a fine imposed by the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), stating that the delay in regulatory disclosure was inadvertent and caused by technical challenges in the newly implemented Integrated XBRL filing system.

In a regulatory communication dated December 23, 2025, the company informed both exchanges that its Board of Directors reviewed the matter relating to the fine during its meeting held on the same day. The fine pertains to a one-day delay in disclosing related party transactions under Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the half-year ended September 30, 2025.

Nature of the penalty

As per the disclosure, both BSE and NSE levied a fine of Rs. 5,000 each, plus applicable GST, on 3M India for the delayed submission. The penalty was imposed under the framework of SEBI’s Master Circular dated November 11, 2024, which prescribes standard operating procedures and penal actions for non-compliance with listing regulations.

The exchanges had issued notices to the company on December 16, 2025, highlighting the non-compliance and directing the company to remit the fine within 15 days of receipt of the communication.

Board’s observations

After reviewing the issue, the Board of Directors noted that the non-compliance was unintentional and occurred due to technical glitches encountered while using the Integrated XBRL filing utility, which has been introduced recently and is currently in its first year of implementation.

The board further observed that the company has otherwise maintained a strong track record of regulatory compliance and that the delay did not arise from any intent to withhold information or mislead stakeholders.

As a corrective measure, the board recommended that future stock exchange disclosures be filed during working hours, wherever possible, so that any technical issues can be promptly resolved in coordination with exchange officials.

Waiver application planned

3M India also informed the exchanges that it intends to apply for a waiver of the penalty in accordance with the Policy for Exemption of Fines levied under the SEBI SOP Circular. The company clarified that the application would be submitted within the stipulated timeline.

Accordingly, while the fine is payable within 15 days from the date of receipt of the exchange communication, the company has stated that the reason for delay or default in payment is the proposed waiver application.

No impact on operations

In its disclosure under Regulation 30 of the SEBI LODR Regulations, 3M India categorically stated that it does not foresee any impact on its financial position, operational performance, or other business activities arising from the fine.

Given the relatively small quantum of the penalty and the procedural nature of the lapse, the company believes the issue will not affect shareholder value or ongoing operations.

Exchange communication details

The notice issued by BSE detailed that the fine was levied specifically for delayed submission of related party transaction disclosures and not for non-submission of financial results. The exchange reiterated that continued non-compliance could attract stricter actions under SEBI norms, including freezing of promoter shareholdings in extreme cases.

However, in the present instance, the fine was limited to a single day’s delay, and no additional regulatory action has been initiated against the company.

Commitment to compliance

3M India reiterated its commitment to timely and complete compliance with all SEBI and stock exchange requirements. The company emphasized that it continuously reviews and strengthens its internal compliance processes to align with evolving regulatory frameworks.

The management also acknowledged the challenges associated with transitioning to new digital filing systems and assured stakeholders that necessary internal controls and checks are being enhanced to prevent recurrence.

Regulatory context

Under SEBI regulations, listed entities are required to disclose related party transactions on a half-yearly basis within prescribed timelines to ensure transparency and protect minority shareholders. Even minor delays attract monetary penalties under the standardized SOP framework, irrespective of intent.

Market participants generally view such disclosures as routine compliance matters, especially when companies proactively explain the reasons and initiate corrective steps, as seen in this case.

Conclusion

The clarification by 3M India underscores that the fine was procedural in nature, linked to a technical issue during the first year of implementing a new filing utility. With the board having reviewed the matter and a waiver application in progress, the episode is unlikely to have any lasting implications for the company.

For investors, the disclosure serves as reassurance that corporate governance practices remain intact, and that the company continues to engage transparently with regulators and stock exchanges.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.