NLC India Limited disclosed receiving a penalty from the BSE for non-compliance with regulations concerning the composition of its Board of Directors, specifically the failure to appoint a Women Director. The imposed fine amounts to Rs. 5,42,800/-, including GST. The company stated this non-compliance was outside its management control as director appointments are vested with the President of India. NLC has formally requested a waiver of this penalty from the exchange.
Disclosure Regarding Regulatory Fine
NLC India Limited has officially informed the stock exchanges regarding a penalty imposed by BSE Limited on February 27, 2026. This penalty stems from a contravention of the stipulations governing the composition of the Board of Directors, specifically the failure to appoint a Women Director as required.
Penalty Details and Financial Impact
The exchange imposed a fine of Rs. 5,42,800/- (including GST) for the aforesaid non-compliance. The company clarified that the imposition of this fine has no impact on its operations or other business activities. The total financial implication is strictly limited to the fine amount of Rs. 5,42,800/-.
Grounds for Penalty Waiver Request
In response to the notice dated February 27, 2026, NLC India Limited submitted a letter on February 28, 2026, requesting a waiver of the imposed fine, citing circumstances beyond management control:
- As a Government Company, the authority to appoint Directors rests solely with the President of India.
- The company’s administrative Ministry, the Ministry of Coal (MoC), has been periodically informed of the requirement to appoint the requisite number of Independent Directors to ensure compliance.
NLC India emphasized that the non-compliance was neither attributable to any negligence or default on the part of the Company’s management nor within its control.
Source: BSE
