Nature of the Event

Hindustan Copper Ltd (HCL) received fines from both BSE Limited and National Stock Exchange of India Ltd for non-compliance with corporate governance requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Quantitative Figures

  • Fine imposed by BSE: ₹14,43,140 (inclusive of 18% GST)
  • Fine imposed by NSE: ₹14,43,140 (inclusive of 18% GST)
  • Total fines from both exchanges: ₹28,86,280
  • Breakdown of base fines before GST:
  • Regulation 17(1): ₹4,55,000 (₹5,000 per day for 91 days)
  • Regulation 17(2A): ₹40,000 (₹10,000 per instance for 4 instances)
  • Regulation 18(1): ₹1,82,000 (₹2,000 per day for 91 days)
  • Regulation 19(1)/(2): ₹1,82,000 (₹2,000 per day for 91 days)
  • Regulation 20(2)/(2A): ₹1,82,000 (₹2,000 per day for 91 days)
  • Regulation 21(2): ₹1,82,000 (₹2,000 per day for 91 days)
  • Total base fine: ₹12,23,000
  • GST @18%: ₹2,20,140

Dates of Action

  • Date of receipt of fine notices: August 25, 2026
  • Disclosure date to exchanges: August 26, 2026
  • Non-compliance period: Quarter ended June 2026 (91 days for daily fines)
  • Payment deadline: Within 15 days from August 25, 2026

Parties Involved

  • Regulatory authorities: BSE Limited, National Stock Exchange of India Ltd, SEBI
  • Listed entity: Hindustan Copper Ltd (Scrip Code: 513599, NSE Symbol: HINDCOPPER)
  • Government authority: Ministry of Mines, Government of India
  • Company signatory: Mritunjay Kumar Dev, Company Secretary & Compliance Officer

Details of Violations

Non-compliance with the following SEBI LODR regulations:

  • Regulation 17(1): Composition of the Board including failure to appoint woman director
  • Regulation 17(2A): Quorum of Board meetings
  • Regulation 18(1): Constitution of audit committee
  • Regulation 19(1)/(2): Constitution of nomination and remuneration committee
  • Regulation 20(2)/(2A): Constitution of stakeholder relationship committee
  • Regulation 21(2): Constitution of risk management committee

Purpose or Rationale

HCL being a Government Company, the power of appointment of directors on its Board is vested with the President of India acting through the Ministry of Mines, Government of India. The company has written to the Ministry for appointment of required number of directors and the matter is under consideration.

Financial Impact

As per the disclosure: "Hence, there is no impact on financial, operation or other activities of the Company." The company states it will seek waiver of fines from both exchanges after appointing the required number of directors.

Consequences of Non-Payment

  • Freezing of the entire shareholding of the promoter in the entity
  • Freezing of all other securities held in the demat account of the promoter
  • Potential transfer to Z group and suspension of trading for second consecutive quarter of non-compliance

Additional Requirements

  • The matter must be placed before the Board of Directors in the next meeting
  • Board comments must be informed to the exchanges for dissemination
  • Waiver applications require compliance achievement as pre-requisite
  • Non-refundable processing fee of ₹10,000 plus 18% GST for waiver applications (if fine > ₹5,000 exclusive of GST)

Payment Details

  • BSE Virtual Bank Account: ICICI Bank Ltd., Account No. BSER04811, IFSC: ICIC0000104
  • NSE Payment: IDBI BANK LTD, Account details as used for Annual Listing fees, IFSC: IBKL0001000