HMT Limited has informed the Exchange about Delay/default in the payment of fines/penalties/dues etc. to authority
HMT · price
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HMT Limited has received notices from both BSE and NSE imposing a fine of Rs. 14,04,200 each (inclusive of GST) for non-compliance with SEBI Listing Regulations during the quarter ended March 31, 2025. The non-compliance relates to Regulations 17(1), 17(2A), 18(1), 19(1)/19(2), 20(2)/(2A), and 21(2), which cover the composition of the Board of Directors and its committees, as well as quorum requirements. The root cause is that the company currently has no Independent Directors on its Board. As a Government Company, all directors are appointed by the Government of India, and HMT has requested the Administrative Ministry to appoint the required number of Independent Directors, including one Independent Woman Director. The company is in the process of applying for a waiver of the fines under the Stock Exchanges' SOP Circular.
This is a regulatory compliance issue rather than a financial or operational problem. The fine of around Rs. 28 lakh combined from both exchanges is relatively small for a listed entity, but the underlying issue — absence of Independent Directors on a government company's board — signals persistent governance gaps that could invite further regulatory action if not resolved. For shareholders, the immediate financial impact is minimal, but the episode highlights administrative bottlenecks in board reconstitution.