Coal India Seeks Penalty Waiver from BSE and NSE for Non-Compliance with SEBI Board Regulations
Coal India Ltd (CIL), the country’s largest coal mining company, has formally requested the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to waive a penalty imposed on it for failing to comply with the SEBI norm regarding the appointment of the required number of Independent Directors, including one woman, on its board.
Both the BSE and NSE imposed a fine of Rs 9.7 lakh each on Coal India for non-compliance with the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). The penalty relates to the quarter ending December 31, 2024.
In its statement, Coal India clarified that the non-compliance was not due to negligence or default on the part of the company. The coal giant emphasized that it had made continuous efforts to meet the compliance requirements, but the issue was beyond the control of its management.
Coal India explained that, as a government-owned company under the Ministry of Coal, the appointment of its Board members is the responsibility of the President of India. Therefore, the company has no direct control over the appointments. Despite this, CIL has been following up with the Ministry of Coal to ensure the appointment of the required Independent Directors, including a woman director, on its board.
On March 18, 2025, Coal India disclosed that it had received notices from the BSE and NSE on March 17, 2025, regarding violations of SEBI LODR regulations. Both stock exchanges imposed a fine of Rs 9,69,960 each on the company for these violations.
In its filing, Coal India mentioned that it had requested both the BSE and NSE for a waiver of the penalties. The company also pointed out that in the past, similar waiver requests had been considered favorably by the exchanges.
