BSE, NSE impose fine on Go Digit
The stock exchanges have fined the insurance platform for a delay in submitting certain disclosures pertaining to related party transactions.
Stock exchanges BSE and NSE on Friday imposed a fine on digital insurance platform Go Digit General Insurance for failing to submit certain disclosures on time.
According to an exchange filing, the company will have to pay Rs 5,000 to the exchanges as it did not submit the XBRL submission of related party transactions for the half year ended September 30 within the stipulated time.
Companies listed on public bourses are expected to file related party transactions (RPT) related disclosures on the same of the conclusion of the board meeting.
While the company submitted its RPT for the period along with the financials of the company within 30 minutes of conclusion of the board meeting held on October 24th, the XBRL submission was made on October 25, thereby flouting the rules.
Founded in 2016, Go Digit General Insurance listed on Indian stock exchanges earlier this year. It provides insurance products across health, travel, and vehicle segments.
The company reported a 3.2x surge in year-on-year profits at Rs 89.47 crore in Q2 FY25, with total income increasing by 16.43%.
This is not the first time the company has come under the purview of SEBI. The insurtech’s road to IPO had not been smooth with SEBI sending back its first documents filed in August 2022 seeking additional information. The company had to refile its papers in January 2023.
In October, Go Digit received a show cause notice from Insurance Regulatory and Development Authority of India after its expenses for the six months ended September 30th exceeded regulatory limits.
Under the new regulations cap, management expenses of general insurers are capped at 30% of their first year commission.
Shares of the company closed down 1.9% at Rs 324.50 apiece on BSE on Friday.
Feature image: Kamesh Goyal, Founder and Chairman, Digit Insurance
Edited by Swetha Kannan
