DocMode Health Technologies Limited, previously known as Docmode Health Technologies Private Limited, has provided its response to the fine imposed by the National Stock Exchange (NSE) for non-compliance with the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015. The fine pertains to the company's delay in submitting its financial results for the quarter ending on September 30, 2024.

Background of the Issue

On December 13, 2024, the NSE sent a notice to DocMode Health Technologies, citing non-compliance with SEBI regulations, specifically Regulation 33, which mandates the timely submission of financial results. The notice mentioned that the company had failed to file its results within the prescribed timeline. The NSE also imposed a penalty for the delay, which was calculated based on the number of days the company had failed to comply. The fine amount was set at Rs. 1,30,000 plus GST, which the company had to pay promptly.

Further, on December 30, 2024, the NSE issued a reminder regarding the non-compliance and imposed a higher penalty, warning that failure to comply could result in severe actions, such as freezing the promoters' shareholding. According to the notice, the penalty could continue to increase if the company did not resolve the issue promptly.

Reason for the Delay

In its response, DocMode Health Technologies provided an explanation for the delay. The company's Board of Directors clarified that the delay in filing the financial results was not due to any negligence but rather due to an issue beyond their control. The delay occurred because the company's external auditor's peer review certification had expired, preventing the auditor from signing the Limited Review Report necessary for submitting the financial results. Once the signed report was obtained, the company promptly filed the financial results.

Board's Response to the Fine

During its meeting on March 12, 2025, the Board of Directors reviewed the NSE's notice and the imposed fine. The Board acknowledged the delay but emphasized that it was unintentional and outside the company's control. After deliberation, the Board confirmed that they had already paid a part of the penalty amounting to Rs. 1,30,000 plus GST on December 27, 2024, as per the notice dated December 13, 2024.

The Board also decided to pay the remaining penalty promptly. Furthermore, the Board expressed its intention to submit a formal request to the NSE for a waiver of the remaining penalty, given that the delay was not caused by any fault of the company.

Future Compliance Measures

The Board of Directors emphasized the importance of ensuring timely compliance with SEBI regulations in the future. The company has committed to taking necessary steps to prevent such delays and ensure that all future filings are made within the stipulated deadlines.

Conclusion

DocMode Health Technologies Limited has assured the NSE that it will continue to follow regulatory requirements and work towards maintaining good corporate governance. The company has paid the penalty and plans to submit a waiver request for the remaining fine, emphasizing that the delay was due to circumstances beyond its control. The company’s commitment to future compliance highlights its dedication to adhering to SEBI regulations and corporate governance standards.

This response from DocMode Health Technologies marks an important step in resolving the non-compliance issue and maintaining a positive relationship with regulatory bodies like the NSE.

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