SJVN Limited has informed the Exchange regarding 'Board comments on Notices/Letters received from the stock exchanges'.
SJVN · price
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SJVN's Board has responded to notices from NSE and BSE imposing fines totalling about Rs. 7.89 lakh (including GST) for non-compliance with several SEBI Listing Regulations during the quarter ended December 2024. The non-compliance related to the composition of the Board (Regulation 17(1), including absence of a woman director) and the constitution of the Audit, Nomination & Remuneration, Stakeholder Relationship, and Risk Management committees, which needed independent directors. SJVN has clarified that, being a Central Public Sector Undertaking, the power to appoint directors lies with the President of India through the Ministry of Power, and the company has no control over the timing. The Board said all committees have since been reconstituted and the company is now compliant with Regulations 18(1), 19, 20 and 21(2). The company is also following up with the Ministry to expedite appointment of independent directors to meet Regulation 17(1) requirements. Separately, the Board noted a cautionary letter for delayed intimation of an analyst/institutional investor meeting held on August 16, 2024, and said internal steps have been taken to prevent such delays in future.
The financial penalty is very small (under Rs. 8 lakh) and immaterial for a Navratna CPSU of SJVN's size, so direct earnings impact is negligible. However, if the Board composition issue persists into the next quarter, the exchanges have warned of transferring the stock to the 'Z' group and possible suspension of trading, which is a near-term overhang investors should watch. The underlying issue is a government-driven governance gap, not company mismanagement, and is likely to be resolved once the Ministry of Power appoints the required independent directors.