SJVN Limited has been levied fines totaling ₹13,44,020 by BSE Limited and the National Stock Exchange of India (NSE) for non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The fines, amounting to ₹11,39,000 plus GST, stem from violations related to board composition, meetings, and committee constitution. SJVN has communicated to the exchanges that the appointment of independent directors is pending government action.
Stock Exchanges Impose Fines on SJVN Limited
SJVN Limited has received notices from both the BSE Limited and the National Stock Exchange of India (NSE) imposing fines for non-compliance with various provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The total fine amount, including GST, is ₹13,44,020.
Details of Non-Compliance and Fines
The fines were imposed for lapses concerning several listing regulations, including:
- Regulation 17(1): Non-compliance with board composition requirements and failure to appoint a woman director.
- Regulation 17(1A): Non-compliance pertaining to the appointment or continuation of non-executive directors aged over seventy-five years.
- Regulation 17(2): Non-compliance with requirements regarding the number of board meetings.
- Regulation 17(2A): Non-compliance with quorum requirements for board meetings.
- Regulation 18(1): Non-compliance with the constitution of the audit committee.
- Regulation 19(1)/19(2): Non-compliance with the constitution of the nomination and remuneration committee.
- Regulation 20(2)/(2A): Non-compliance with the constitution of the stakeholder relationship committee.
- Regulation 21(2): Non-compliance with the constitution of the risk management committee.
- Regulation 27(2): Non-submission of the Corporate governance compliance report within the stipulated period.
The total fine amount levied by the exchanges stands at ₹11,39,000, with an additional ₹2,05,020 as GST, bringing the total payable to ₹13,44,020.
Company’s Response to the Fines
SJVN Limited, being a Government Company, has stated that the power to appoint Directors vests with the Hon’ble President of India, acting through the Ministry of Power. The company or its Board does not hold any power in this regard. SJVN has communicated that it has made several requests to the Ministry of Power and the Ministry of MPP and Power, Government of Himachal Pradesh, to expedite the appointment of Independent Directors. The company understands that the government is in the process of appointing the Chairman and Managing Director (CMD) and Independent Directors soon.
The company has been advised by the exchanges to ensure compliance with the respective regulations and pay the fines within 15 days of the notice. SJVN can also file for a waiver request through the NEAPS portal, provided that compliance is achieved prior to such application.
Source: BSE
