Bharat Heavy Electricals Limited (BHEL) has received notices from BSE and NSE regarding non-compliance with regulations concerning the composition of its Board of Directors. The company faces a fine of ₹5,42,800/- from each exchange, totaling ₹10,85,600/-. BHEL is seeking a waiver of these fines, citing its status as a government company where director appointments are government-led. The issue pertains to Q2 2025.
Non-Compliance Notice
BHEL has been notified by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) about non-compliance regarding the composition of its Board of Directors. This relates to having less than 50% of the actual strength of the board as Independent Directors.
Financial Implications
As a result of this non-compliance, BHEL faces a financial penalty. Both BSE and NSE have imposed a fine of ₹5,42,800/- each. This includes Goods and Services Tax (GST). The total fine from both exchanges amounts to ₹10,85,600/-.
Company’s Response
BHEL is taking steps to address these penalties. The company is formally requesting a waiver of the fines levied by the stock exchanges. BHEL emphasizes its status as a Government Company and highlights that the appointment of directors, including Independent Directors, is managed by the Government of India. The non-compliance relates to Q2 2025 performance.
Source: BSE
