SJVN Limited received notices from the National Stock Exchange of India and BSE Limited regarding fines for non-compliance with SEBI regulations. The SJVN Board addressed these notices, noting that the power to appoint Directors rests with the President of India through the Ministry of Power. The company has requested the expedited appointment of Independent Directors to comply with regulatory requirements.
Explanation of Non-Compliance
SJVN Limited has received notices from the National Stock Exchange of India (NSE) and BSE Limited regarding fines imposed for non-compliance with specific provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Board’s Response and Government’s Role
The Board of Directors of SJVN Limited has addressed the notices and highlighted that SJVN is a Government Company as defined under Section 2(45) of the Companies Act, 2013. According to Article 32 of the company’s Articles of Association, the authority to appoint Directors to the Board lies with the President of India, acting through the Ministry of Power (MoP).
Efforts to Expedite Appointments
SJVN has communicated with the Ministry of Power, the Government of India, and the Government of Himachal Pradesh, requesting the expedited appointment of Independent Directors to the Board. These efforts are aimed at enabling the company to meet the requirements outlined in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Anticipated Government Action
SJVN understands that the government is in the process of appointing the CMD, Whole-time Directors, and Independent Directors to the board in the near future. The company emphasizes its ongoing efforts to fulfill regulatory obligations and enhance its governance structure.
Details of Penalties from Stock Exchange
SJVN Limited faced penalties from the stock exchange for non-compliance with certain regulations during Q2 (Jul-Sep) 2025. These included regulations pertaining to:
- Composition of the Board, with a total fine payable of ₹542,800
- Appointment/continuation of Non-executive director over 75 years
- Number of Board meetings
- Quorum of Board meetings
- Constitution of audit committee
- Constitution of nomination and remuneration committee
- Constitution of stakeholder relationship committee
- Non-submission of the Corporate Governance compliance report
Important Note on Fines
If compliance isn’t achieved by the date of the letter, the fine amount will continue to increase daily. The company is also advised that non-compliance with Regulations 17(1), 18(1), and 27(2) for two consecutive quarters could result in the company being transferred to Z group and liable for suspension of trading of its equity shares.
Source: BSE