Bharat Heavy Electricals Limited (BHEL) has been levied a fine of ₹11,03,300 (inclusive of GST) by the BSE and NSE for non-compliance with SEBI (LODR) Regulations, 2015. The lapses pertain to the composition of its Board, Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee as of June 30, 2026. The company is seeking a waiver of these fines.
Stock Exchange Fines Issued to BHEL
Bharat Heavy Electricals Limited (BHEL) has disclosed receipt of notices from both the BSE Limited and the National Stock Exchange of India (NSE) imposing a combined fine of ₹11,03,300, inclusive of GST. These penalties stem from non-compliance with certain clauses of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, for the quarter ending June 30, 2026.
Details of Non-Compliance
As of June 30, 2026, BHEL reported continued non-compliance in several critical areas. These include the composition of its Board of Directors, specifically the number of Non-executive/Independent Directors (IDs) being less than 50% of the Board’s strength. Additionally, the composition of the Audit Committee and the Nomination and Remuneration Committee, as well as the Stakeholders Relationship Committee and the Risk Management Committee, were found to be non-compliant effective from June 2, 2026. The company highlighted that it had only one ID on its Board until June 1, 2026, and subsequently, no IDs from June 2, 2026 onwards.
Company’s Response and Future Actions
In light of these penalties, BHEL intends to seek a waiver of the fines levied by the stock exchanges, in accordance with the relevant SOP Circulars. The company emphasized that it is a Government of India undertaking, and its Directors, including Independent Directors, are appointed by the Government of India. BHEL is actively engaging with the Government of India to ensure the appointment of the required number of Independent Directors to facilitate compliance with the aforementioned regulations.
Source: BSE
