MTNL · price
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MTNL has filed its Annual Secretarial Compliance Report for FY2024-25, submitted by R.P. Sehgal & Associates. The report flags multiple non-compliances with SEBI Listing Regulations, mainly because MTNL did not have the required number of Independent Directors on its Board and its committees. Four Independent Directors completed their tenure on November 1, 2024, and the last one ended on March 23, 2025, leaving the Board with no Independent Directors including no Women Director for most of FY2024-25. As a result, BSE and NSE levied fines across several quarters — including Rs 43.18 lakh for FY2023-24 board composition issues and Rs 6.93 lakh each from BSE/NSE for the December 2024 quarter covering Board, Audit, Nomination & Remuneration, Stakeholders Relationship and Risk Management Committee deficiencies. The company has clarified that as a Government PSU, director appointments are made by the Department of Telecommunications, and two new Independent Directors were appointed on April 15, 2025.
Repeated non-compliance with board composition norms and accumulated fines from stock exchanges reflect weak corporate governance at MTNL, which is negative for shareholder confidence. While the company attributes the gap to delays by its administrative ministry in appointing directors, investors should note that governance deficiencies are an ongoing risk and may attract further penalties until the Board is fully reconstituted.