BSE, NSE Impose ₹59.17 Lakh Penalty On NTPC, SJVN & REC Over Governance Lapses
Mumbai: Stock exchanges BSE and NSE have imposed combined penalties of about Rs 59.17 lakh on state-owned power companies NTPC, SJVN and REC for failing to meet corporate governance requirements under SEBI’s listing regulations. The action relates mainly to deficiencies in the composition of the companies’ boards and board committees. All three companies have argued that director appointments are…
Mumbai: Stock exchanges BSE and NSE have each slapped about Rs 5.36 lakh fines on state-owned power companies NTPC, SJVN and REC for governance lapses in their corporate structures. The regulatory penalties stem from deficiencies in the composition of the firms' boards and their committees.
NTPC, the nation's largest power producer, said it faces a combined penalty of Rs 10.73 lakh from both exchanges. The company argues that its directors are appointed by the Union government under its Articles of Association and seeks waivers from the exchanges.
Sariska-based SJVN, a hydropower producer, has been fined Rs 26.88 lakh in total by BSE and NSE. SJVN also plans to seek waivers from the exchanges, citing the same governmental control over director appointments.
The last of the trio, REC, has received separate Rs 10.77 lakh penalties from each exchange. This brings REC's total fine to Rs 21.54 lakh. REC operates by providing long-term loans and other financing products to various entities developing infrastructure across India.
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