Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015.
Awaiting price reaction for this filing.
POWERGRID has received notices from BSE and NSE dated 29th May 2025 for not complying with SEBI LODR rules on board composition, quorum for board meetings, and composition of four statutory committees (Audit, Nomination & Remuneration, Stakeholders Relationship, and Risk Management) during Q4 FY25 (quarter ended 31st March 2025). Each exchange has imposed a fine of Rs. 14,39,600 (including GST), taking the total to about Rs. 28.8 lakhs. The non-compliance arose because POWERGRID had no Independent Director on its Board during that quarter — as a government company, the appointment of Independent Directors is done by the President of India. POWERGRID has since appointed two Independent Directors on 16th April 2025 and one Independent Woman Director on 16th May 2025, and all statutory committees have been reconstituted. The company has written to both exchanges requesting a waiver of the fines.
The fines are very small for a company of POWERGRID's size and are unlikely to affect the stock price materially. More importantly, the company is now fully compliant with board and committee composition rules, and has sought a waiver, so the issue should not escalate further. Investors should note that future lapses could occur if government-appointed Independent Director positions fall vacant again.