COMPLIANCE OF REGULATION 30 & 51 OF SEBI (LODR) REGULATIONS, 2015 - DISCLOSURE OF EVENTS OR INFORMATION DISCLOSURE OF IMPOSITION OF FINES OR PENALTY
MTNL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
MTNL has received penalty notices from both NSE and BSE for non-compliance with Regulation 17(1) of SEBI (LODR) Regulations, 2015, which relates to Board composition requirements including appointment of Independent Directors and a woman director. Both exchanges have imposed identical fines of Rs. 5,31,000 each (basic fine Rs. 4,50,000 plus Rs. 81,000 GST @18%), calculated at Rs. 5,000 per day for 90 days of non-compliance for the quarter ending March 2026. The company states it is a PSU where all appointments including Independent Directors are made by the Department of Telecommunications, and has already taken up the matter with the government. MTNL is requesting waiver of the fines from both exchanges and has 15 days to pay or seek waiver. The company claims there is no material impact on its financial or operational activities.
The fine amount of Rs. 5.31 lakh per exchange is relatively small for a company of MTNL's size, so direct financial impact is minimal. However, continued non-compliance could lead to more serious consequences including freezing of promoter shareholding and eventual transfer to Z-group with trading suspension if this becomes the second consecutive quarter of non-compliance.