SJVN Faces Heavy Fines from Stock Exchanges Over Non-Compliance with SEBI Regulations
SJVN Limited has been assessed fines by both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) following non-compliance and delayed compliance concerning certain provisions of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The company's Board of Directors has taken note of these assessments and is currently working to expedite the appointment of necessary directors to ensure full compliance with regulatory mandates.The notices from both exchanges detailed various instances of non-compliance pertaining to corporate governance and board composition for the period ending March 2026. These include failures related to appointing women directors, ensuring quorum, and reconstituting key committees.
Fine Assessments by BSE and NSE
The assessment of fines across the listed regulations highlights significant financial penalties. The total fine payable amounts are detailed below, covering various corporate governance mandates:Non-Compliance Related to Board Composition and Structure:
- Non-compliance with Regulation 17(1) regarding the composition of the Board resulted in a base fine of Rs. 450,000 per quarter ended March 2026.
- For Regulation 18(1), which relates to the constitution of an audit committee, the company was assessed a fine totaling Rs. 38,000 over 19 days for non-compliance.
Governance Committee and Reporting Violations:
The fines also covered regulations pertaining to various governance structures:
- Non-compliance with Regulation 27(2), concerning the submission of the Corporate Governance Compliance Report, was assessed at Rs. 0.
- For compliance regarding the constitution of the nomination and remuneration committee (Regulation 19(1)/19(2)), the assessed fine amount was zero.
- Violations related to the constitution of the risk management committee (Regulation 21(2)) resulted in a fine total of zero.
The aggregated financial penalties levied by BSE for non-compliance as of May 27, 2026, are summarized in the table below:
| Applicable Regulation | Fine Prescribed | Fines Levied for Mar-26 Quarter | Basic Fine (Rs.) | GST @18% (Rs.) | Total Fine Payable (Rs.) |
|---|---|---|---|---|---|
| Reg. 17(1) (Board Composition/Woman Director) | Rs. 5,000 per day | 450,000 | 450,000 | 81,000 | 531,000 |
| Reg. 17(1A) (Director age over 75) | Rs. 2,000 per day | 0 | 0 | 0 | 0 |
| Reg. 17(2) (Board Size Requirement) | Rs. 10,000 per instance | 0 | 0 | 0 | 0 |
| Regulation 17(2A) (Quorum of Board) | Rs. 10,000 per instance | 0 | 0 | 0 | 0 |
| Reg. 18(1) (Audit Committee) | Rs. 2,000 per day | 38,000 | 38,000 | 6,840 | 44,840 |
| Reg. 19/19(2) (Nomination & Remuneration Committee) | Rs. 2,000 per day | 0 | 0 | 0 | 0 |
| Reg. 20/2A (Stakeholder Relationship Committee) | Rs. 2,000 per day | 0 | 0 | 0 | 0 |
| Reg. 21(2) (Risk Management Committee) | Rs. 2,000 per day | 0 | 0 | 0 | 0 |
| Reg. 27(2) (Compliance Report Submission) | Rs. 2,000 per day | 0 | 0 | 0 | 0 |
| Total | 488,000 | 488,000 | 87,840 | 575,840 |
Company Comments and Regulatory Steps
The Board of Directors noted the notices from both BSE and NSE concerning the levied fines. The Board's comments indicate that as a Government Company, the power to appoint directors vests with the President of India acting through the Ministry of Power (MoP). The company has repeatedly requested the MoP and relevant state government authorities to expedite the process of appointing Independent Directors.The management stated that the government is in the process of appointing the CMD, Wholetime Directors, and Independent Directors soon to enable compliance with SEBI requirements.
Furthermore, regulatory guidelines established by the exchanges stipulate that non-compliance noted by the Exchange must be presented before the Board of Directors in its next meeting, and the Board's comments must subsequently be communicated back to the Exchange for dissemination.
SJVN Stock Price Movement
Shares of SJVN Limited slipped by 0.27% in post-market trading today, closing at ₹70.38. The equity traded during the session between a low of ₹70.05 and a high of ₹70.98.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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