New Delhi, March 18 National mining giant Coal India Ltd (CIL) has requested the BSE and the NSE for a waiver of the penalty imposed on the company due to non-compliance with the SEBI norm on the appointment of the requisite number of Independent Directors, including one woman, on its Board.
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have each imposed a penalty of Rs 9.7 lakh on the CIL for non-compliance with provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR) for the quarter ended December 31, 2024.
The coal major has stated that the non-compliance with regard to the SEBI regulations was neither due to any negligence or default by the company nor within the control of CIL's management and continuous efforts were also made to meet the compliance requirements.
The CIL has stated that it is a 'government company' under the administrative control of the Ministry of Coal. As per the Articles of Association of Coal India Ltd, the appointment of all Board Members is done by the President. Accordingly, the appointment of Board Members is outside the purview of the CIL's management. CIL is regularly following up on the matter with the Ministry of Coal for the appointment of the requisite number of Independent Directors, including one Woman Independent Director, on its Board.
In a regulatory filing on March 18, Coal India disclosed that it had received notices from the NSE and the BSE on March 17, 2025, citing violations of Regulations 17(1), 18(1), 19(1&2), and 21(2) of SEBI LODR. As a result, both stock exchanges have imposed a fine of Rs 9,69,960 each on the company.
"CIL had requested BSE and NSE for waiver of penalty. It may be noted that in the past waiver requests were considered favourably by the Exchanges," the government-owned coal major said in its statement.
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