Bharat Petroleum Corporation Limited (BPCL) has been fined ₹14,66,740 by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for non-compliance with various SEBI Listing Obligations and Disclosure Requirements. The fines stem from issues related to the composition of the Board, audit committee, and other key committees. BPCL is seeking a waiver for these penalties, citing the unique appointment process for its directors.
BPCL Penalized by Stock Exchanges
Bharat Petroleum Corporation Limited (BPCL) has disclosed that it has been levied fines by both the BSE Ltd. and the National Stock Exchange of India Ltd. totaling ₹14,66,740 for each exchange. These penalties are a result of non-compliance with specific regulations outlined in the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Reasons for Fines
The stock exchanges cited violations pertaining to Regulation 17(1), 17(2A), 18(1), 19(1)/19(2), 20(2)/20(2A), and 21(2) of the SEBI LODR Regulations, 2015. These lapses are primarily linked to the composition of the company’s Board, the quorum of board meetings, and the constitution of critical committees such as the audit committee, nomination and remuneration committee, stakeholder relationship committee, and risk management committee. The period of non-compliance was identified as 91 days.
Company’s Stance and Next Steps
BPCL clarified that the current situation arose due to the completion of tenure for its Independent Directors in March 2026, leaving the company without an Independent Director on the Board. Consequently, the company is currently unable to constitute the requisite board committees. As BPCL is a Government Company, its directors are appointed based on nominations from the Government of India. The company is actively pursuing fresh nominations to reconstitute the Board and its committees. In light of these circumstances, BPCL plans to approach the BSE and NSE to request a waiver of the imposed fines.
Source: BSE
