Now Reading: BSE, NSE fine NTPC, SJVN, REC Rs 59 crore for non-compliance
-
01
BSE, NSE fine NTPC, SJVN, REC Rs 59 crore for non-compliance
Stock exchanges BSE and NSE have imposed penalties totalling Rs 59.14 crore on three public sector power companies, NTPC, SJVN, and REC, for breaching listing regulations. The fines are for non-compliance with…
Stock exchanges BSE and NSE have imposed penalties totalling Rs 59.14 crore on three public sector power companies, NTPC, SJVN, and REC, for breaching listing regulations. The fines are for non-compliance with norms related to the composition of the board of directors, specifically Regulation 17(1) of the listing regulations.
NTPC said each exchange imposed a penalty of Rs 5.36 lakh, inclusive of GST. The company has requested the exchanges not to levy the fines, arguing that as a government company, the power to appoint or remove directors rests with the President of India through the Ministry of Power. SJVN faces separate fines of Rs 13.44 lakh each from BSE and NSE, and will seek a waiver on similar grounds. REC has been fined Rs 10.77 lakh by each bourse for non-compliance in the quarter ended June 30, 2026.
All three companies are actively pursuing appointments of independent directors to meet the requirements of SEBI listing regulations. The fines highlight a recurring tension between government control over state-owned enterprises and the independent board composition mandated by market regulators.
Indian Opinion Analysis
This is not the first time state-owned firms have clashed with exchanges over board composition. Under the Companies Act and SEBI regulations, listed companies must have a minimum number of independent directors. However, for central public sector enterprises, the appointing authority is the government, often leading to delays in filling vacancies. The cumulative penalty of nearly Rs 60 crore reflects the exchanges' growing enforcement. The outcome depends on whether SEBI accepts the government's unique governance structure as a valid reason for waiver, or insists on strict compliance. The companies' next step is to file formal waiver requests with the exchanges.
Watch for the exchanges' decisions on the waiver pleas and for any appointment of independent directors by the Ministry of Power.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above.
