In a formal communication dated April 5, 2025, Persistent Systems Limited, a major listed technology services company, disclosed that it has received a warning letter from BSE Limited regarding a delayed regulatory filing connected to the resignation of a senior management personnel (SMP).

This action by the BSE falls under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015—a core compliance regulation aimed at ensuring transparency and timely communication of material events.

The Incident Explained

The issue traces back to the resignation of Mr. Rajiv Sodhi, a Senior Management Person (SMP) of Persistent Systems, whose resignation was effective from February 9, 2024. However, the company disclosed this information only on April 28 and April 29, 2024, a clear delay beyond the regulatory timelines set by SEBI.

As per SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, the resignation of directors, key managerial personnel (KMP), SMPs, auditors, and compliance officers must be disclosed within 24 hours of the resignation becoming effective. Additionally, the resignation letter itself must be disclosed within 7 days.

Persistent’s failure to adhere to both conditions triggered regulatory concern.

What Did BSE Say?

In its official communication, BSE noted:

“The Exchange has observed that the aforesaid intimation was not submitted within the prescribed timelines... The non-compliance on your part is viewed seriously.”

BSE advised Persistent to:

• Exercise due diligence in the future

• Avoid recurrence of such regulatory lapses

• Present the warning letter to its Board of Directors

• Publicly disclose the letter on the stock exchanges

The communication also carried a warning that any future compliance lapses will be dealt with more strictly.

Impact on Persistent Systems

According to the company’s own assessment shared on April 5, 2025:

• There is no material financial, operational, or reputational impact from this regulatory warning.

• The company has committed to ensuring strict compliance with SEBI LODR regulations moving forward.

Persistent Systems has taken the appropriate step of publicly acknowledging the BSE communication, thus complying with the regulatory requirement to disseminate the warning letter.

About the Resigned SMP

While the company’s disclosure did not repeat detailed background, previous announcements confirmed that Mr. Rajiv Sodhi, a Senior Management Person, resigned effective February 9, 2024. No further reason for the resignation was given at the time.

Given the role of a senior management figure, SEBI requires prompt disclosure of such changes to ensure transparency for investors and stakeholders.

Legal and Regulatory References

The action by BSE and the subsequent response from Persistent are governed under:

• Regulation 30 of SEBI LODR Regulations, 2015

• Para A of Part A of Schedule III of SEBI LODR

• SEBI Circular dated July 13, 2023 (No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123)

These rules are designed to make sure important governance events—like resignations of top executives—are disclosed promptly, allowing for greater shareholder awareness and market transparency.

Company Response and Next Steps

Persistent Systems, in its communication signed by Company Secretary Amit Atre, has acknowledged the lapse and confirmed that:

• The matter will be presented to the Board of Directors for review and future course correction.

• Internal compliance mechanisms will be tightened to prevent such lapses from recurring.

• The letter has been publicly disclosed on both NSE and BSE in line with the requirements.

Company Information

Persistent Systems Limited

• CIN: L72300PN1990PLC056696

• Head Office: Bhageerath, 402 Senapati Bapat Road, Pune 411016, Maharashtra

• Stock Symbols: NSE – PERSISTENT | BSE – 533179

• Email: info@persistent.com

• Website: www.persistent.com

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