Coal India Seeks Penalty Waiver from BSE and NSE

Synopsis

On March 18, Coal India Ltd (CIL) requested the BSE and NSE to waive penalties imposed for failing to comply with SEBI regulations on independent directors' appointments, including one woman. CIL insists that non-compliance was not due to negligence and is actively pursuing compliance with the Ministry of Coal.

Key Takeaways

Coal India Ltd requests penalty waiver from BSE and NSE.
Penalties imposed for non-compliance with SEBI regulations.
Fine amounts to Rs 9.7 lakh from both exchanges.
CIL states non-compliance was not due to negligence.
CIL actively engages with the Ministry of Coal for board appointments.

New Delhi, March 18 (NationPress) The prominent mining corporation Coal India Ltd (CIL) has sought a waiver from the BSE and NSE regarding the penalty levied on it for failing to comply with the SEBI regulation concerning the necessary appointment of independent directors, which must include at least one woman, on its board.

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have both imposed a fine of Rs 9.7 lakh on CIL for not adhering to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR) for the quarter ending December 31, 2024.

CIL has asserted that its non-compliance with the SEBI regulations was not due to any negligence or fault on its part, nor was it within the control of CIL's management. The company has made consistent efforts to fulfill compliance requirements.

CIL has stated that it operates as a 'government company' under the oversight of the Ministry of Coal. According to its Articles of Association, the appointment of all board members is the prerogative of the President, meaning the management of CIL does not have control over these appointments. CIL is actively pursuing the Ministry of Coal for the appointment of the required number of independent directors, including one woman independent director.

In a regulatory announcement on March 18, Coal India revealed that it had received notifications from the NSE and BSE on March 17, 2025, regarding violations of Regulations 17(1), 18(1), 19(1&2), and 21(2) of SEBI LODR. Consequently, both exchanges imposed penalties of Rs 9,69,960 each on the company.

CIL noted, ‘CIL had requested BSE and NSE for waiver of penalty. It may be noted that in the past waiver requests were considered favourably by the Exchanges’, the state-owned coal giant said in its announcement.