NLC India Limited has informed the Exchange regarding 'Board Comments on fine levied by the Stock Exchanges'.
NLCINDIA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
NLC India was fined Rs. 11.80 lakh plus 18% GST (total Rs. 13.92 lakh) by NSE for non-compliance with SEBI LODR Regulations related to board composition, meeting quorum, and committee constitution (Audit, Nomination & Remuneration, Stakeholders Relationship, Risk Management) during the Jan-Mar 2025 quarter. Most issues were resolved after the Ministry of Coal appointed three Independent Directors on March 28, 2025 and reconstituted the committees. However, non-compliance under Regulation 17(1) continues as the company still lacks an Independent Woman Director on its board. The Board has decided to write to the Ministry of Coal requesting appointment of the required Independent Directors, including a Woman Director, to prevent future penalties. NSE has warned that continued non-compliance could lead to freezing of promoter shareholdings and shifting the stock to 'Trade for Trade' (Z category) trading.
This is a procedural governance compliance issue with a relatively small financial penalty; most violations are already rectified. However, persistent non-compliance under Regulation 17(1) and the risk of the stock being moved to Z-category (restricted trading) could pressure the share price and dent investor sentiment if not resolved soon.