Orient Cement Limited has recently received cautionary letters from both the National Stock Exchange of India Limited (NSE) and BSE Limited concerning a delay in disclosure regarding an order passed by the Assistant Commissioner, Central Tax, Gulbarga, Karnataka. The delay was identified in an earlier intimation dated May 10, 2024, where the company mentioned that it was due to inadvertent oversight. These cautionary letters were issued for the company's failure to disclose the event within the required 24-hour period as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Violation

As per Sub-para 20 of Para A, Part A of Schedule III of SEBI LODR, listed companies are required to disclose any regulatory actions or orders within 24 hours of receiving them. The delay in disclosure violated these rules, prompting the NSE and BSE to issue cautionary letters.

The company explained that the delay was inadvertent and attributed to oversight. It also emphasized that this incident would not have any significant financial, operational, or other impacts on the company's activities. Despite this, the exchanges have taken the matter seriously, issuing warning letters advising Orient Cement to take corrective actions to ensure timely compliance in the future.

Cautionary Letters from NSE & BSE

On April 1, 2025, the NSE issued a cautionary email regarding the delayed disclosure, stressing the importance of compliance with the SEBI LODR and related circulars. It was noted that any future delays in disclosures would lead to serious consequences. The BSE also sent a warning letter pointing out the violation of the required timelines for disclosure, reiterating that future non-compliance could lead to more severe action.

Both exchanges instructed Orient Cement to place the matter before its Board of Directors and adopt measures to prevent such lapses from recurring. Furthermore, the company was asked to disseminate copies of the warning letters to the stock exchanges.

Company’s Response

In its communication to the exchanges, Orient Cement Limited assured that it would adhere to the compliance requirements and take corrective measures to avoid such delays in the future. Additionally, the company stated that the matter did not have any adverse impact on its financial performance or operations, which was an important aspect highlighted in their disclosure.

Key Takeaways:

• Cautionary letters were issued by NSE and BSE for a delay in disclosure.

• The company explained that the delay was inadvertent and caused by oversight.

• No financial or operational impact on the company was reported.

This disclosure is part of Orient Cement's commitment to maintaining transparency and adhering to regulatory guidelines. It also serves as a reminder of the importance of timely disclosures to ensure compliance with SEBI's rigorous reporting standards.

This is an ongoing issue that may require closer scrutiny by shareholders and investors to ensure that such compliance issues are resolved, and the company remains aligned with the legal framework. Corrective actions are expected to be implemented promptly to prevent such occurrences in the future.

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