Board comments on fine levied by the Exchange
NATIONALUM · price
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NSE and BSE each imposed a fine of Rs. 6,63,160 (including 18% GST on a base fine of Rs. 5,62,000) on NALCO for non-compliance with SEBI (LODR) Regulations 17, 18, 19 and 20 for the quarter ended 31 December 2024. These regulations relate to the composition of the Board, Audit Committee, Nomination & Remuneration Committee, and Stakeholders Relationship Committee, which require a minimum number of Independent Directors. NALCO's Board noted that the company is a Central Public Sector Enterprise (CPSE) and that the appointment of all Directors, including Independent Directors, lies with the President of India, meaning the company has no control over this. The Board has formally requested both exchanges to condone the non-compliance and waive the penalties, and the matter has been escalated to the Ministry of Mines for early appointment of Independent Directors.
The financial impact is negligible given the small fine size relative to NALCO's scale, and the issue stems from government-controlled director appointments rather than company mismanagement. This is unlikely to affect the stock price but highlights a recurring governance challenge for CPSEs awaiting Independent Director appointments from the government.