Sify Technologies Ltd. has notified Nasdaq of its noncompliance with listing requirements, following the resignation of Dr. Ajay Kumar from its Board of Directors. The company now falls short of independent director and audit committee requirements, triggering a cure period to regain compliance.
Key Highlights:
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Regulatory Breach: Dr. Kumar’s resignation led to noncompliance with Nasdaq Listing Rule 5605 (b) (1), which mandates a majority independent board, and Rule 5605 (c) (2), requiring three audit committee members.
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Cure Period Granted: Nasdaq has provided a compliance window until May 15, 2026, or earlier if Sify’s next annual shareholders’ meeting occurs before November 11, 2025.
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No Immediate Delisting: The Nasdaq notice does not impact trading, but failure to comply within the cure period could lead to delisting proceedings.
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Board Restructuring Underway: Sify is actively evaluating candidates to fill the vacant independent director position, ensuring compliance before the deadline.
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Investor Sentiment: While the announcement has raised concerns, the company remains committed to resolving governance gaps and maintaining market stability.
With Nasdaq’s compliance deadline looming, Sify Technologies is racing to restructure its board, ensuring longterm regulatory adherence and investor confidence.
Sources: Yahoo Finance, GlobeNewswire, StreetInsider