POWERGRID has been penalized with a fine of ₹11,36,340/- (including GST) each by both the BSE and NSE for non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The violations pertained to the composition of the Board, quorum for meetings, and statutory committees during the quarter ended June 30, 2026, primarily due to an insufficient number of Independent Directors.
Regulatory Fines Issued to POWERGRID
POWERGRID has received notices from BSE Limited and the National Stock Exchange of India Limited (NSE) informing the company about non-compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). Consequently, both exchanges have imposed a fine of ₹11,36,340/- (inclusive of GST) on POWERGRID.
Details of Non-Compliance
The non-compliance specifically relates to provisions concerning the composition of the Board, quorum for Board meetings, and the composition of statutory committees, including the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee. These lapses occurred during the financial quarter that ended on June 30, 2026.
The affected SEBI LODR regulations include 17(1), 17(2A), 18(1), 19(1)/19(2), 20(2)/ (2A) and 21(2). The financial implication for each exchange is the aforementioned fine amount of ₹11,36,340/-.
Reason for Non-Compliance
POWERGRID stated that the non-compliance arose due to an insufficient number of Independent Directors during the quarter ended June 30, 2026. As a Government Company, the appointment of Directors, including Independent Directors, rests with the President of India. The matter has been escalated to the Ministry of Power for addressing the vacant posts of Independent Directors.
Waiver Request Submitted
In light of these circumstances, POWERGRID has submitted requests to both BSE and NSE seeking a waiver of the imposed fines, citing that the lapses were not a direct fault of the company but rather due to procedural aspects related to directorial appointments.
Source: BSE
