BHELBSEBharat Heavy Electricals LtdMinimalNeutral
Announced Wed, 20 May · 15:30 IST

BHEL Secretarial Compliance Report for FY 2025-26

BHEL · price

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AI summary

BHEL has filed its Annual Secretarial Compliance Report for FY 2025-26, prepared by Practicing Company Secretaries M/s Akhil Rohatgi & Co. The report identifies non-compliance with SEBI Listing Regulations regarding Board composition: (1) Regulation 17(1) — insufficient independent directors including no woman independent director for quarters ended June, September, and December 2025, with NSE & BSE each levying fines of approximately Rs. 5.37 lakh and Rs. 5.43 lakh; (2) Regulation 18(1) — Audit Committee not properly composed from 28.03.2026 to 31.03.2026 with only one independent director remaining; (3) Regulation 19(1) — Nomination & Remuneration Committee not properly composed during the same period. BHEL attributes all violations to Government of India being the appointing authority for its directors, noting it has repeatedly requested the government to fill vacancies. Fines for earlier quarters (Q4 FY2025) totalling approximately Rs. 10.72 lakh were previously levied and waived. All other areas including secretarial standards, RPTs, insider trading, and website disclosures are compliant.

Likely market impact

The non-compliance with board composition norms is a governance concern, though the company has sought waiver of fines citing government control over director appointments. The matter is under process with the Government of India, and pending resolution, the stock may face continued regulatory scrutiny.