MSTC Limited has disclosed that the BSE levied a fine of ₹5,42,800 (including GST) against the company for non-compliance related to the composition of its Board for the quarter ended December 31, 2025. MSTC clarified that director appointments are the prerogative of the Government of India (Ministry of Steel), and the non-compliance was outside its management control. The company has requested the BSE to waive the fine, noting it has no financial impact.
Penalty Imposed for Regulatory Lapse
MSTC Limited has officially informed exchanges regarding a penalty imposed by the BSE. The penalty amounts to Rs. 5,42,800 (including GST) and was levied for non-compliance pertaining to the composition of the Board under the relevant listing regulations for the quarter ending December 31, 2025. This disclosure was made pursuant to the regulatory mandate for public announcements concerning such actions.
Company’s Defense and Context
MSTC Limited, a Mini Ratna Category-I PSU, operates under the administrative control of the Ministry of Steel, Government of India (GOI). The company emphasized that the power to appoint all Directors, including Independent Directors, vests solely with the President of India through the Ministry of Steel. MSTC stated clearly that it has no role to play in the appointment of any Director unless the GOI provides a specific nomination.
Furthermore, the management clarified that this lapse was neither due to any negligence on their part nor within the control of MSTC’s management. The company has been continuously pursuing the Ministry of Steel for the necessary nominations for independent directors but has not yet received them.
Impact and Request for Waiver
The announcement confirms that the levied fine has no impact on the financial, operational, or other activities of MSTC Limited. Given the circumstances—that the cause of non-compliance rests outside the immediate operational control of the management—MSTC has formally requested the Stock Exchanges to waive off the fine.
Source: BSE
