Hindustan Copper Limited (HCL) has been fined by both BSE and NSE for non-compliance relating to the composition of its board and key committees. The fines, amounting to ₹9,77,040 each, stem from not meeting requirements under SEBI regulations. HCL is seeking a waiver and has engaged with the Ministry of Mines regarding required director appointments.
Details of Penalties
Hindustan Copper Limited (HCL) has received fines from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) due to non-compliance with regulations concerning the composition of the Board, Audit Committee, and Nomination and Remuneration Committee. Each exchange has levied a fine of ₹9,77,040.
Reasons for Non-Compliance
The penalties are a result of non-compliance with Regulation 17(1), 18(1), and 19(1) & (2) of the SEBI (LODR) Regulations, 2015. This specifically relates to the composition of the Board and the constitution of the aforementioned committees.
Company Response
As a government company, the appointment of directors to HCL’s Board is vested with the President of India, acting through the Ministry of Mines. HCL has communicated with the Ministry of Mines, Government of India, to appoint the required number of directors. The matter is currently under consideration.
Impact Mitigation
HCL is seeking a waiver of the fines from both BSE and NSE upon the appointment of the required directors. The company anticipates that the matter is under consideration and there will be no significant impact on financial operations once the required directors are appointed.
Source: BSE