Fine Imposed by Exchanges on PSE Due to Non-Compliance: Read the Details

Terrific Thursday for Bulls

Thursday is turning out to be a terrific session for the bulls on D-Street. The NSE benchmark Nifty 50 index has hit a fresh all-time high, surpassing the 22,800 mark for the first time ever. Meanwhile, the BSE Sensex is trading above the 75k mark, with the Nifty near the 22,850 mark, up by over 1%.

Sectoral Performance

The majority of the sectors were seen trading in green, led by Nifty PSU Bank and Nifty Bank, which were up by 1.79% and 1.62%, respectively. This broad-based rally indicates strong market sentiment and investor confidence.

Fines Imposed on Public Sector Companies

Amid this buoyancy, there is an important update related to some public sector companies as the exchange has imposed fines. Here is the list of companies and the fines imposed:

Midhani

Stock exchanges have imposed a fine of Rs 5,36,900 for the quarter ended on March 31, 2024, for non-compliance under Regulation 17(1) of SEBI LODR, which requires that half of the Board of Directors comprises Independent Directors. As of now, MIDHANI has not paid any fine to stock exchanges on account of non-compliances pertaining to Board composition. The authority for the appointment of Directors on the Board of MIDHANI vests with the President of India, acting through the Ministry of Defence, and the Board of MIDHANI has no role in the appointment of Directors. MIDHANI will seek a waiver of the fine levied by BSE & NSE on account of the impossibility of compliance as per the policy for exemption of fines. The company has clarified that the fine levied by NSE and BSE has no impact on the financial, operational, or other activities of the Company.

Hindustan Aeronautics (HAL)

A fine of Rs 5,36,900 was imposed by exchanges on HAL for non-compliance with Regulation 17(1) regarding the composition of the Board of Directors due to an insufficient number of Independent Directors. In a press release, it was stated that since the matter was beyond the control of the Company, applications for waiver of fines under Sl. No. 3(a) of the Policy of exemption of fines levied as per the provisions of SEBI SOP Circular were filed with NSE, the Designated Stock Exchange for the purpose, representing their case. However, it was directed to put up the case only after compliance.

Indian Railway Catering and Tourism Corporation (IRCTC)

A fine was imposed on IRCTC for non-compliance with the provisions of Regulation 17(1) of SEBI (LODR) Regulations, 2015, for not having the requisite number of Independent Directors, including an Independent Woman Director, on the Board for the quarter ended March 31, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.