BHEL has been fined ₹5,42,800 (including GST) by the BSE and NSE for non-compliance regarding its Board structure for the quarter ending December 2025. The issue stemmed from having an insufficient number of Independent Directors, falling below the 50% threshold. As BHEL is a Government Company whose directors are appointed by the Government of India, the company is seeking a waiver of the imposed penalty.
Regulatory Compliance Update: Board Composition Shortfall
Bharat Heavy Electricals Limited (BHEL) has formally disclosed a notice received from both the BSE Limited and the National Stock Exchange of India (NSE) concerning non-compliance with regulatory requirements for the quarter ending December, 2025. This breach relates to the composition of the Board of Directors, specifically the rule mandating that the number of Independent Directors must not be less than 50% of the total strength of the Board.
Financial Penalty Imposed
As a result of this shortfall in independent directorship, both stock exchanges have imposed a penalty upon BHEL. The total fine amounts to Rs. 5,42,800/- (inclusive of GST). This penalty specifically pertains to the violation of Regulation 17 (1) of the relevant Listing Obligations & Disclosure Requirements.
Waiver Request and Government Linkage
In response to the penalties, BHEL has stated its intention to seek a waiver of these fines from the Stock Exchanges, citing specific procedures outlined in the SOP Circular. The company emphasized that, as a Government Company, the appointment of all directors, including Independent Directors, rests entirely with the Government of India. BHEL confirms it is continually following up with the Government of India to ensure the requisite number of Independent Directors are appointed promptly, thereby achieving future compliance with all mandated regulations.
This information is provided for record and transparency purposes, dated 02.03.2026.
Source: BSE
