Exchanges Levy ₹22,25,480 Fine for June Quarter Board Composition Lapses; Board Seeks Waiver

BSE and NSE each fined the company ₹11,12,740 (total ₹22,25,480) for non-compliance for the quarter ended 30.06.2026 — board composition, no woman director, and committee constitution.

Sat 26 Sep 2026

Fine for Q2 FY2026-27

₹22,25,480 (BSE and NSE combined)

Earlier fine for Q1 FY2026-27

₹15,29,280

Cumulative fines

₹37,34,760

Notice dates

25.08.2026 from BSE and NSE

Board decision date

26.09.2026 to seek waiver and pursue Ministry of Coal

What happened

The company received notices dated 25.08.2026 from BSE and NSE regarding non-compliance with various SEBI LODR provisions for the quarter ended 30th June 2026. Each exchange imposed a fine of ₹11,12,740 (inclusive of GST), taking the total to ₹22,25,480.

Break-up per exchange (June 2026 quarter)

• Regulation 17(1), Board composition including failure to appoint woman director: basic fine ₹4,55,000, total ₹5,36,900 (₹5,000 per day)
• Regulation 18(1), Audit Committee constitution: total ₹2,14,760 (₹2,000 per day)
• Regulation 19(1)/19(2), Nomination and Remuneration Committee: total ₹2,14,760 (₹2,000 per day)
• Regulation 20(2)/(2A), Stakeholder Relationship Committee: total ₹1,46,320 (₹2,000 per day)
• Basic fine ₹9,43,000 plus GST ₹1,69,740

Earlier quarter

For the quarter ended 31st March 2026, communicated on 27.05.2026, each exchange had levied ₹7,64,640 (basic ₹6,48,000 plus GST ₹1,16,640), aggregating ₹15,29,280. The cumulative fine across both quarters and both exchanges is ₹37,34,760.

Reason given

The company states the non-compliance arises mainly from inadequate strength of Independent Directors, including absence of a Woman Independent Director, which affected the constitution of the Audit, Nomination & Remuneration and Stakeholder Relationship Committees. It says it has repeatedly written to the Administrative Ministry since 29.11.2024, and had obtained specific exemptions from SEBI up to the date of listing vide letters dated 12.09.2025 and 11.12.2025. Appointment of Independent Directors in Central Public Sector Enterprises is done by the Government of India with approval of the President, so the company states the matter is beyond its direct control.

Board comments (meeting of 26th September 2026)

• Submit a request to the Stock Exchanges for waiver of the fines, stating the facts
• Take up the matter with the Ministry of Coal for appointment of Independent Directors

What investors may note

The monetary amounts are modest relative to a large coal producer, but the update shows a continuing governance gap that has attracted penalties in two consecutive quarters. Fines may continue on a per-day basis until the Board and committees are reconstituted, and the resolution depends on Government action.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.