Oil India Limited has been fined Rs. 5,42,800/- by the BSE Limited for non-compliance with the requirement to appoint the requisite number of Independent Directors for the Quarter ended December, 2025. The company stated that this non-compliance stems from the appointment process being controlled by the Administrative Ministry, not the company itself. Oil India confirmed there is no material financial or operational impact from this regulatory violation.
Regulatory Penalty Notification
Oil India Limited has disclosed a regulatory action taken by the BSE Limited via an email received on February 27, 2026. The action pertains to the company’s compliance status for the financial period ending December, 2025.
Details of the Action and Fine
The regulatory authority levied a financial penalty amounting to Rs. 5,42,800/- against the Company. This penalty was issued for the contravention of Regulation 17(1) of the SEBI (LODR) Regulations, 2015, specifically concerning the Non-appointment of the requisite number of Independent Directors on the Board during that quarter.
Company Context and Impact Assessment
Oil India Limited clarified that as a Government of India Enterprise, the appointment of its Directors is managed by the Administrative Ministry, the Ministry of Petroleum & Natural Gas. Therefore, the shortfall in the composition of the Board was considered to be beyond the control of the Company. The management confirmed that they have been persistently requesting the Ministry for the appointment of the necessary Independent Directors.
Crucially, the management assessed that this specific regulatory breach will result in None material impact on the company’s financials, operations, or other activities to the extent quantifiable in monetary terms.
Source: BSE
