Board comments on Notices/Letters received from the stock exchanges
Awaiting price reaction for this filing.
SJVN's Board addressed two notices from NSE and BSE. First, the stock exchanges levied total fines of approximately ₹7.89 lakh (including GST) for non-compliance with SEBI Listing Regulations during the Oct-Dec 2024 quarter, covering issues like failure to appoint a woman director (Regulation 17(1), fine of ₹3.13 lakh) and improper constitution of audit, nomination, stakeholder, and risk management committees. The Board clarified that SJVN, being a Central Public Sector Undertaking, has no power to appoint directors — that authority rests with the President of India through the Ministry of Power. The company has since reconstituted its committees and is now fully compliant with most of these regulations; only the board composition issue remains, pending Ministry of Power action. Second, the Board acknowledged cautionary letters from NSE and BSE over delayed disclosure of an August 2024 analyst/investor meeting and stated that internal compliance procedures are being strengthened to prevent recurrence.
The penalty amount is small and unlikely to affect the stock, but if non-compliance with Regulation 17(1) persists for a second consecutive quarter, SJVN risks being shifted to the Z group and facing trading suspension — a serious overhang for shareholders. Investors should watch for the timely appointment of independent directors by the Ministry of Power to remove this risk.