Nature of the Disclosure

SJVN Limited has made a regulatory disclosure to the stock exchanges informing them of fines levied by BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) for non-compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure includes the notices received and the comments decided by the Company's Board of Directors.

Key Quantitative Figures

Fines were imposed for the quarter ended March 2026. The total fine payable to BSE is ₹575,840 (inclusive of 18% GST). The breakdown is as follows:

  • Regulation 17(1) non-compliance: Basic Fine ₹450,000 + GST ₹81,000 = ₹531,000
  • Regulation 18(1) non-compliance: Basic Fine ₹38,000 + GST ₹6,840 = ₹44,840
  • Other regulations (17(1A), 17(2), 19, 20, 21, 27(2)): ₹0

The NSE notice specifies a total basic fine of ₹488,000 for the same period, with GST to be added.

Dates of Action

  • Notices from the exchanges were received by the company. The BSE notice is dated May 27, 2026.
  • The Board of Directors noted the fines and decided on the response on July 14, 2026.
  • The company is required to pay the fines within 15 days from the date of the respective notices.

Parties Involved

  • Regulators: BSE Limited, National Stock Exchange of India Limited (NSE), Securities and Exchange Board of India (SEBI).
  • Government Entities: Ministry of Power, Government of India; Ministry of Power, Government of Himachal Pradesh.
  • Company Representatives: Soumendra Das, Company Secretary (signatory).
  • Exchange Officers: Reena Raphel (Manager, BSE), Shraddha Bagwe (Deputy Manager, BSE), Sonam Yadav (Manager, NSE).

Purpose or Stated Rationale

The Board's submitted comments provide the rationale for the non-compliance. SJVN is a Government Company, and as per its Articles of Association (Article 32), the power to appoint Directors rests solely with the President of India acting through the Ministry of Power. The company states it has no authority in this matter. The company has sent requests to the Ministry of Power to expedite the appointment of Independent Directors and understands the government is in the process of making these appointments soon.

Financial and Operational Impact

The direct financial impact is a liability of ₹575,840 payable to BSE (and a corresponding amount to NSE). The disclosure states the financial impact of the fines.

Potential Consequences

As per the notices, failure to pay the fines within 15 days will lead the exchanges to initiate action for freezing the entire shareholding of the promoter. Furthermore, if this is the second consecutive quarter of non-compliance for Regulations 17(1) or 18(1), the company will be transferred to the Z group and face suspension of trading for its equity shares.

Board and Governance Impact

The Board of Directors has noted the fines. As required by the master circular, the matter of non-compliance and the exchange's action must be placed before the Board in its next meeting, and the Board's comments must be informed to the exchanges.

#Tags: #SJVN #SEBILODR #SEBIDisclosure #RegulatoryCompliance #Governance #Negative