Now Reading: BSE, NSE fine NTPC, SJVN, REC Rs 59 crore for board rule breach
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BSE, NSE fine NTPC, SJVN, REC Rs 59 crore for board rule breach
Stock exchanges BSE and NSE have imposed penalties totaling Rs 59.14 crore on three state-owned power companies, NTPC, SJVN, and REC, for non-compliance with SEBI listing regulations regarding board composition. The fines were levied for the quarter ended June 30, 2026.
NTPC was fined Rs 5,36,900 each by BSE and NSE for non-compliance with Regulation 17(1), which deals with board composition. SJVN faces fines of Rs 13,44,020 each from both exchanges for multiple violations including regulations on board and committee composition. REC has been fined Rs 10,77,340 each.
All three companies have attributed the compliance gap to delays in appointment of independent directors by the Ministry of Power, stating that the power to appoint directors rests with the President of India acting through the ministry. NTPC and SJVN have requested the exchanges to waive the fines, while SJVN noted that independent director Arti Kujur was appointed from July 17, 2026, bringing it into compliance with certain regulations.
Indian Opinion Analysis
Both sources report the fines factually, with Economic Times providing greater regulatory detail, listing each violated clause. The companies uniformly blame the Ministry of Power for the director appointment delays, and no source contests this framing. The core issue, that a government monopoly on director appointments creates a conflict with SEBI's independence requirements, remains unaddressed by either the companies or the regulators. Whether the exchanges will grant waivers will test SEBI's enforcement consistency against state-owned firms.
Coverage: 2 sources, 2 neutral
Sources (2): thehindubusinessline.com (neutral report), legal.economictimes.indiatimes.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 2 sources.
