Key Quantitative Figures

  • Total fine imposed: ₹7,64,640 (inclusive of GST) by each exchange, totaling ₹15,29,280
  • Fine breakdown per BSE:
  • Regulation 18(1): ₹1,44,000 + GST ₹25,920 = ₹1,69,920 (Audit Committee constitution)
  • Regulation 19(1)/19(2): ₹1,44,000 + GST ₹25,920 = ₹1,69,920 (Nomination and Remuneration Committee)
  • Regulation 17(1): ₹3,60,000 + GST ₹64,800 = ₹4,24,800 (Board composition including independent directors)
  • Total: ₹6,48,000 + GST ₹1,16,640 = ₹7,64,640

Parties Involved

  • Regulatory authorities: Bombay Stock Exchange, National Stock Exchange of India, SEBI
  • Parent company: Coal India Limited
  • Government authority: Ministry of Coal, Government of India

Violations Details

Non-compliance with:

  • Regulation 17(1): Composition of Board including failure to appoint woman director and independent directors
  • Regulation 18(1): Constitution of audit committee
  • Regulation 19(1)/19(2): Constitution of nomination and remuneration committee

Company Rationale and Context

Bharat Coking Coal Limited is a subsidiary of Coal India Limited and a Government Company under Ministry of Coal. The company states that appointment of Independent Directors in CPSEs is carried out by Government of India with approval of the President of India, beyond the company's direct control. The company had obtained specific exemptions from SEBI compliance pre-listing and claims the non-compliance was neither due to negligence nor within management's control.

Current Actions

  • Company is pursuing matter with Administrative Ministry for appointment of requisite number of Independent Directors, including Woman Independent Director
  • Requesting waiver of fines from stock exchanges
  • Matter was placed before Board on May 30, 2026 with recommendations to request waiver and engage Ministry of Coal

Financial Impact

Quantifiable monetary impact of ₹7,64,640 per exchange (₹15,29,280 total) payable to:

  • BSE Virtual Bank Account: BSER14031 (ICICI Bank, IFSC: ICIC0000104)
  • Payment required within 15 days of May 27, 2026 notice

Consequences of Non-Payment

  • Freezing of entire shareholding of promoter in the entity
  • Freezing of all other securities held in demat account of promoter
  • For second consecutive quarter non-compliance: Transfer to Z group and suspension of trading of equity shares

Additional Requirements

  • Subject matter must be placed before Board of Directors
  • Board comments must be informed to Exchange for dissemination
  • Fine remittance details must be submitted in specified format to bse.soplodr@bseindia.com

#Tags: #BharatCokingCoal #SEBIFines #RegulatoryCompliance #BoardComposition #GovernmentCompany #Negative