Key Quantitative Figures
- Total fine imposed: ₹7,50,480 (inclusive of GST)
Dates of Action
- Fine imposition date: 27th May 2026 (via email)
- Violation period: 28th March 2026 to 31st March 2026 (for main violations)
- Additional violation period: 1st January 2026 to 17th March 2026 (for Nomination and Remuneration Committee composition)
Parties Involved
- Authority imposing fine: BSE Limited
Details of Violations
During the quarter ended 31st March 2026, the Company failed to maintain:
- Independent Director, Woman Director, and Independent Woman Director (28th March to 31st March 2026)
- At least 50% Non-Executive Directors due to insufficient numbers
- All members of Nomination and Remuneration Committee as Non-Executive Directors (1st January to 17th March 2026)
Specific Regulation Violations
- Regulation 17(1) - Board composition requirements
- Regulation 18(1)(b) and (d) - Board composition and committees
- Regulation 19(1)(b) and (c) - Nomination and Remuneration Committee composition
- Regulation 19(2) - Stakeholders Relationship Committee
- Regulation 20(2)/(2A) - Related Party Transactions
- Regulation 21(2) - Corporate governance reporting
Financial Impact
No immediate operational impact expected except for the fine amount of ₹7,50,480. Financial impact quantified as the fine amount only.
Rationale and Context
Company attributes non-compliance to its status as a Central Public Sector Enterprise under Ministry of Petroleum & Natural Gas. Article 7A of Articles of Association states that the President of India appoints directors for government companies, making board composition dependent on administrative ministry directions. The company considers these factors beyond its control.
Company Action
Representation has been made to BSE Limited seeking waiver of the fine.