Notice received from BSE and NSE for Non-compliance of Regulation 17, 18, 19, 20 and 21 of of SEBI (LODR) Regulations, 2015 for the quarter ended March 31, 2025.
Awaiting price reaction for this filing.
Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC and a Central Public Sector Enterprise (CPSE), received notices from BSE and NSE for non-compliance with Regulations 17(1), 17(2A), 18(1), 19, 20, and 21(2) of the SEBI LODR Regulations, 2015 for the quarter ended March 31, 2025. The non-compliance relates to the composition of the Board and its sub-committees, particularly the absence of requisite Independent Directors including a Women Independent Director. Both exchanges have levied a fine of ₹13,71,160 (including 18% GST) each, totaling approximately ₹27.42 lakhs. MRPL is requesting a waiver of the fine, citing that as a CPSE, the appointment of Directors is the responsibility of the Ministry of Petroleum and Natural Gas (MoP&NG), Government of India. The Ministry has since re-appointed 4 Independent Directors (including a Women Independent Director) on March 28, 2025, and the company has reconstituted its committees and is now compliant with the regulations.
This is a procedural compliance issue rather than a fundamental business concern. The fine is relatively small (around ₹27.42 lakhs combined) and is being contested with a waiver request. The company has already addressed the underlying issue by reconstituting the board committees, so the long-term impact on shareholders is minimal. Short-term, the stock may see minor negative sentiment due to the governance flag.