Date: 28.05.2026

Regulatory Action & Fines

Hindustan Copper Ltd (HCL) received separate communications (emails/letters) from BSE Limited and National Stock Exchange of India Ltd (NSE) on 27.05.2026. Both exchanges imposed a fine of ₹9,55,800 each on the company for non-compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) for the quarter ended March 2026.

The specific regulations violated are:

  • Regulation 17(1): Non-compliance with requirements pertaining to the composition of the Board, including failure to appoint a woman director. A basic fine of ₹4,50,000 was levied for this violation.
  • Regulation 18(1): Non-compliance with the constitution of the audit committee. A basic fine of ₹1,80,000 was levied.
  • Regulation 19(1)/19(2): Non-compliance with the constitution of the nomination and remuneration committee. A basic fine of ₹1,80,000 was levied.

The total basic fine from both exchanges was ₹8,10,000. Goods and Services Tax (GST) at 18% (₹1,45,800) was added to this amount, resulting in the total payable fine of ₹9,55,800 per exchange.

The fine for Regulation 17(1) is prescribed at ₹5,000 per day of non-compliance, while the fines for Regulations 18(1) and 19(1)/(2) are prescribed at ₹2,000 per day. The notice specifies that if the company remains non-compliant as of the date of the letter, the fine amount will continue to increase daily until compliance is achieved.

Company's Response & Impact Assessment

HCL, in its disclosure, states that as a Government Company, the power to appoint directors to its Board is vested with the President of India, acting through the Ministry of Mines, as per its Articles of Association. The appointment of the required number of directors is under consideration by the Ministry.

The company has stated that "there is no impact on financial, operation or other activities of the Company" due to this action. It further stated that consequent upon the appointment of the required directors, it will seek a waiver of the fines from both BSE and NSE.

Exchange Directives & Consequences

Both exchanges have directed HCL to pay the fines within 15 days from the date of their letters (27.05.2026). Failure to pay may result in the freezing of the entire shareholding of the promoter(s) and all other securities held in their demat accounts.

The notices also highlight that if this constitutes a second consecutive quarter of non-compliance for Regulations 17(1), 18(1), or 27(2), the company would be transferred to the Z group and be liable for suspension of trading of its equity shares.

HCL is required to place the matter of this non-compliance and the subsequent exchange action before its Board of Directors in its next meeting. Any comments made by the Board must be informed to the exchanges for dissemination.

Payment Instructions

BSE provided a dedicated virtual bank account for payment: Account Name: BSE Limited, Bank: ICICI Bank Ltd. - CMS Branch, Virtual Account No.: BSER04811, IFSC Code: ICIC0000104.

NSE instructed payment to be made via RTGS/NEFT/Net Banking to the account used for paying Annual Listing fees, with RTGS/IFSC Code: IBKL0001000.

Both exchanges provided contact information for queries related to compliance and remittance.

Waiver Process

NSE's notice detailed the process for applying for a waiver of fines. Key parameters include:

  • Waiver applications must be submitted online via the NEAPS portal (NEAPS>>Compliance>>Fine Waiver>>Waiver Request), not via email.
  • Achieving compliance is a pre-requisite for applying for a waiver.
  • A non-refundable processing fee of ₹10,000 plus 18% GST is required if the fine amount is more than ₹5,000 (exclusive of GST).
  • Companies must indicate if they seek a personal hearing before the concerned committee.