Key Quantitative Figures

  • Total fine imposed: ₹5,31,000 (by each exchange, BSE and NSE)
  • Breakdown of fine: Basic fine of ₹4,50,000 + GST @18% amounting to ₹81,000
  • The fine is for non-compliance during the quarter ended March 2026
  • Fine prescribed per day for Regulation 17(1) non-compliance: ₹5,000
  • Number of days of non-compliance: 90 days

Dates of Action

  • Notices received from exchanges: May 27, 2026
  • BSE reference: Email/Letter No. SOP-Review Letter dated 27.05.2026
  • NSE reference: Letter No. NSE/LIST-SOP/COMB/FINES/0611 dated 27.05.2026
  • Disclosure made by MTNL: May 28, 2026
  • Payment due: Within 15 days from receipt of notice (by approximately June 11, 2026)

Parties Involved

  • Regulatory bodies: BSE Limited, National Stock Exchange of India Limited, SEBI
  • Administrative authority: Department of Telecommunications (DoT), Ministry of Communications, Government of India
  • Company officials: Ratan Mani Sumit, Company Secretary

Nature of Non-Compliance

Non-compliance with Regulation 17(1) pertaining to the composition of the Board. Specifically, failure to meet requirements for board composition including potentially the appointment of woman director (as indicated in BSE's detailed breakdown).

Financial Impact

As explicitly disclosed: "there is no material impact on the Financial, operation or other activities of MTNL."

Company Response and Rationale

MTNL is a Public Sector Undertaking where all board appointments including Independent Directors are made by the Administrative Ministry (Department of Telecommunications). The matter for appointment of Six Independent Directors has already been taken up with the Government of India. The company is requesting both NSE and BSE for waiver of fines.

Additional Requirements

As per exchange notices, the company must:

  • Place the matter before the Board of Directors in its next meeting
  • Inform the exchange of board comments for dissemination
  • Achieve compliance as a pre-requisite for applying for waiver
  • Pay fines within 15 days or face potential freezing of promoter shareholding
  • For second consecutive quarter of non-compliance, could face transfer to Z group and suspension of trading

Payment Details

  • BSE virtual bank account: BSER01856 (ICICI Bank Ltd., IFSC: ICIC0000104)
  • NSE bank account: Use Unique Account Code for Annual Listing fees (IDBI Bank Ltd., IFSC: IBKL0001000)
  • Waiver processing fee (if applicable): ₹10,000 + 18% GST for fines over ₹5,000