AstraZeneca Pharma India Gets Warning Letter From NSE
The warning letter was issued to AstraZeneca Pharma India for not complying with a regulatory norm that mandates the attendance of at least two independent directors in audit committee meeting.
AstraZeneca Pharma India Ltd. on Monday said that the company received a warning letter from National Stock Exchange of India on Feb. 7.
"It was observed that the company is in non-compliance with the provisions of Regulation 18(2)(b) of LODR, as only one independent director attended the audit committee meeting held on May 27, 2024," stated the letter, which was attached by the company in an exchange filing.
Under regulation 18(2)(b) of the SEBI Listing Regulations— the quorum for audit committee meeting shall either be two members or one third of the members of the audit committee, whichever is greater, with at least two independent directors. "The aforesaid non-compliance on your part is viewed seriously," the letter said.
NSE has advised the company to be careful in future, exercise due caution and initiate corrective steps to avoid recurrence of such lapses so as to ensure due compliance with the exchange circulars. "Any aberration in future will be viewed seriously and appropriate action would be initiated," it added.
Additionally, the drugmaker has also been advised by the NSE to place before its board of directors the warning letter and the corrective measures taken to avoid such lapses.
Shares of AstraZeneca Pharma India closed 0.81% lower at Rs 7,550 apiece on the NSE, compared to a 0.76% decline in the benchmark Nifty 50 index. The stock has risen by 31.9% in the last 12 months.
