Hindustan Copper Limited (HCL) is seeking exemption from a fine imposed by the exchanges for non-compliance with corporate governance requirements. The fine, amounting to ₹9,77,040 each from BSE and NSE, relates to regulations regarding the composition of the Board and its committees. HCL, a government company, asserts that the appointment of directors is vested with the President of India and that they have requested the government to appoint directors to rectify the matter.
Fine Imposed for Governance Non-Compliance
Hindustan Copper Limited (HCL) has received notices from both the BSE and NSE regarding a fine of ₹9,77,040 from each exchange due to non-compliance with corporate governance regulations. These regulations pertain to the composition of the Board and its Committees for the quarter ended September 30, 2025 (Q2).
Reason for Non-Compliance
As a Government Company, the power to appoint directors rests with the President of India. HCL has communicated with the Ministry of Mines, Government of India, to request the appointment of five part-time non-official / independent directors to the Board, aiming to fulfill the statutory requirements. The matter is currently under consideration.
Company’s Request
HCL has requested the exchanges to grant an exemption from the payment of the fine, citing the unique circumstances of director appointments within a government-owned entity. This request leverages the ‘Uniform Carve Out Policy’ of the exchanges.
Source: BSE
