COMPLIANCE OF REGULATION 30 OF SEBI (LODR) REGULATIONS, 2015 - DISCLOSURE OF EVENTS OR INFORMATION DISCLOSURE OF IMPOSITION OF FINES OR PENALTY
MTNL · price
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MTNL has been fined by both NSE and BSE (Rs. 5,42,800 each, total ~Rs. 10.85 lakh including GST) for non-compliance with SEBI's Regulation 17(1) regarding the composition of its Board, specifically for failing to have the required number of Independent Directors including a Woman Independent Director. The fine was calculated at Rs. 5,000 per day for 92 days of non-compliance in the quarter ended December 2025. MTNL has stated that appointments of Independent Directors are made by the Government of India (Department of Telecommunications), and it has requested the exchanges to waive the fines. The company says there is no material financial impact, but warned that fines continue to accrue daily until compliance is achieved, and if non-compliance persists for a second consecutive quarter, trading in MTNL shares could be suspended and the stock moved to the 'Z' group.
The fine amount itself is small and not material for MTNL, but the underlying issue — an incomplete Board including absence of required Independent Directors — is a governance red flag. Shareholders should watch for: (1) whether DoT appoints the remaining Independent Directors quickly, (2) risk of trading suspension if the Board remains non-compliant for another quarter, and (3) potential freezing of promoter shareholding if the fine is not paid within 15 days.