Coal India Ltd (CIL) has approached the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), requesting a waiver of the penalties imposed on the company for non-compliance with SEBI’s regulations concerning the appointment of Independent Directors, including one woman director, on its Board.
Both BSE and NSE have levied penalties of ₹9.7 lakh each on the state-owned coal mining giant for failing to meet the provisions outlined under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the quarter ending December 31, 2024.
In its appeal, CIL clarified that the non-compliance was neither due to negligence nor deliberate default on the company’s part. It emphasized that the issue was beyond the control of its management and that consistent efforts have been made to fulfill the regulatory requirements.
Coal India explained that, being a government-owned entity under the administrative control of the Ministry of Coal, the appointment of Board members falls under the jurisdiction of the President of India. As per its Articles of Association, the company does not have the authority to appoint its Board members independently. The company has been regularly following up with the Ministry of Coal to expedite the appointment of the requisite number of Independent Directors, including a Woman Independent Director, as mandated by SEBI.
In a regulatory filing on March 18, CIL disclosed that it had received formal notices from both exchanges on March 17, citing violations of specific regulations—namely, Regulations 17(1), 18(1), 19(1 & 2), and 21(2) of the SEBI LODR. Consequently, a fine of ₹9,69,960 each was imposed by the BSE and NSE.
CIL expressed optimism in its filing, stating that in the past, similar requests for penalty waivers had been favourably considered by the stock exchanges.
— IANS
