MTNL Levied Fines of Rs. 5,31,000 by NSE and BSE Over Board Composition Non-Compliance
Mahanagar Telephone Nigam Ltd (MTNL), a Government of India Enterprise, has received notices from both the National Stock Exchange (NSE) and BSE regarding non-compliance with certain listing regulations pertaining to the composition of its Board.The notices highlighted non-compliance with the provisions of Regulation 17(1) of the SEBI (LODR) Regulations, 2015. As a result, both exchanges imposed fines on MTNL.
The total fines levied by both exchanges amount to Rs. 5,31,000 each. The fine structure includes:
- Basic fines amounting to Rs. 4,50,000.
- GST @18% amounting to Rs. 81,000.
Regulatory Fines Summary
| Exchange | Regulation Cited | Total Fine Imposed | Basic Fine | GST @18% |
|---|---|---|---|---|
| BSE | Regulation 17(1) | Rs. 5,31,000 | Rs. 4,50,000 | Rs. 81,000 |
| NSE | Regulation 17(1) | Rs. 5,31,000 | Rs. 4,50,000 | Rs. 81,000 |
Company’s Stance and Mitigation Efforts
MTNL confirmed that the company is a Public Sector Undertaking (PSU). The management noted that all appointments, including Independent Directors on the Board, are made by the Administrative Ministry, specifically the Department of Telecommunications (DoT), Ministry of Communications, Government of India.In addressing the matter of board composition, MTNL stated that the process for appointing Six Independent Directors has already been taken up with the Government of India.
Furthermore, the company has formally requested a waiver of the fines from both the National Stock Exchange and the BSE.
MTNL Stock Price Movement
On Wednesday, Mahanagar Telephone Nigam Limited shares edged higher, closing at ₹30.97 after gaining 1.71% for the day. The stock saw robust trading activity, settling on a total volume of 1.29 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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