Oil India updates Stock Exchanges about the fine imposed for non-compliance for Q2 FY24. The company seeks a waiver, informing the Ministry of Petroleum and Natural Gas and advising further action.
Oil India Limited (OIL) has submitted an update to the Stock Exchanges regarding the fine imposed on the company for non-compliance in the quarter ended September 30, 2024. This follows the previous letter dated November 22, 2024, on the same matter.
In a meeting held on December 18, 2024, the Board of Directors reviewed the issue and noted that action was taken by informing the Administrative Ministry, the Ministry of Petroleum and Natural Gas (MoP&NG), about the fine through a letter dated November 25, 2024. The company also requested MoP&NG to appoint the necessary Independent Directors on the Board.
In light of the circumstances, the Board has advised the company to request the Stock Exchanges again to waive the fine, as the non-compliance was beyond the company’s control. The company seeks the cooperation of the Stock Exchanges in this regard.
The fine was levied on Oil India Limited due to non-compliance with Regulation 17(1) of the SEBI (LODR) Regulations, 2015. Specifically, the company did not have the requisite number of Independent Directors on its Board for the quarter ended September 2024.
This non-compliance was beyond the company’s control, as Oil India is a government enterprise, and the appointment of Directors is managed by the Ministry of Petroleum and Natural Gas.
On December 19, Oil India’s share price traded 0.19% lower at ₹444.55 by 2:15 PM on the NSE. The stock opened at ₹436, lower than ₹445.40 at the previous close.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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