Hindustan Copper Limited (HCL) has been levied a total fine of ₹28,86,280 by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The fines, amounting to ₹14,43,140 each, stem from non-compliance with SEBI (LODR) Regulations, 2015, specifically concerning the composition of the Board and constitution of Committees. HCL has sought intervention from the Ministry of Mines for director appointments, hoping for a waiver of these penalties.
Hindustan Copper Faces Fines for Governance Breaches
Hindustan Copper Limited (HCL) has been penalized by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for failing to adhere to corporate governance requirements. The exchanges imposed separate fines of ₹14,43,140 each, bringing the total penalty to ₹28,86,280.
Reason for Penalties
The fines were levied due to non-compliance with specific provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These violations primarily relate to the composition of HCL’s Board of Directors and the constitution of its various committees. The breaches identified by the exchanges include Regulation 17(1), 17(2A), 18(1), 19(1)/(2), 20(2)/(2A), and 21(2) of the SEBI (LODR) Regulations, 2015.
Company’s Response and Mitigation Efforts
Hindustan Copper Limited has communicated that it is actively addressing the issue. As a Government of India undertaking, the appointment of directors to its Board is vested with the President of India, acting through the Ministry of Mines. HCL has formally written to the Ministry of Mines, Government of India, requesting the appointment of the required number of directors to ensure Board composition compliance. The company is awaiting consideration on this matter and anticipates seeking a waiver of the imposed fines once the compliance is achieved.
Impact on Operations
The company has stated that the non-compliance has no impact on its financial, operational, or other activities. The focus remains on rectifying the Board composition to fulfill regulatory requirements and subsequently pursue the waiver of the levied fines from both BSE and NSE.
Source: BSE
