Suzlon Share Price Slipped Over 2%: Check Out Why?

Suzlon Energy stock price experienced turbulence on October 3, 2024, following advisory warnings issued by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The exchanges raised concerns over the company’s handling of disclosures related to the resignation of Independent Director, Marc Desaedeleer.

On October 1, 2024, Suzlon Energy announced that it had received advisory cum warning letters from both NSE and BSE, citing non-compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR). The warnings stemmed from the company’s June 8, 2024, disclosure, which was deemed inadequate by SEBI in terms of transparency and completeness.

Desaedeleer’s resignation letter highlighted lapses in corporate governance practices within Suzlon Energy. Additionally, the company’s disclosure failed to provide sufficient details regarding other directorships held by Desaedeleer.

The exchanges also flagged another instance of non-compliance related to an analyst and investor call held on June 9, 2024. SEBI mandates that companies inform stock exchanges of such events at least two working days in advance. However, Suzlon scheduled the call on short notice to address concerns arising from the director’s resignation.

In their advisory, NSE and BSE emphasised the importance of adhering to corporate governance best practices and SEBI regulations. They warned Suzlon to exercise greater caution and ensure compliance in future disclosures, stating that further lapses could lead to stricter actions.

Suzlon Energy has assured that these regulatory issues will not have a material impact on its financial or operational activities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.