Shares of Suzlon Energy, a wind energy company, have been on a steady climb in recent days. Led by Tulsi Tanti, the company’s market cap reached a significant Rs 93,029 crore as of July 30. However, amidst this positive momentum, the National Stock Exchange of India Limited (NSE) has issued a warning letter to Suzlon Energy for failing to comply with disclosure regulations.
The NSE’s letter, dated July 29, pointed out that a disclosure regarding an analyst call held on November 6, 2023, was submitted to the exchange on the same day. This was deemed to be short notice, as per the Securities and Exchange Board of India’s (SEBI) Listing Obligations and Disclosure Requirements (LODR) rules. The LODR regulations clearly state that listed entities must provide at least two working days’ notice (excluding the date of intimation and date of the meeting) regarding scheduled meetings with analysts or institutional investors.
The NSE’s letter expressed its serious concern regarding Suzlon Energy’s non-compliance. The exchange warned the company to exercise caution in the future and implement corrective measures to prevent such lapses. They emphasized the importance of strict adherence to the SEBI LODR provisions. The NSE further cautioned that any future violations by the company would be dealt with severely, and appropriate actions would be taken.
Despite the warning, Suzlon Energy shares continued to rise, gaining 5% to reach a new record high of Rs 68.22 on the NSE. This surge in share price indicates investor confidence in the company’s future performance. However, the NSE’s warning highlights the importance of transparent communication and compliance with regulatory guidelines by listed companies.
