State-owned KIOCL on Thursday said stock exchanges BSE and NSE have levied penalties of Rs 5.36 lakh each for non-compliance.
The bourses have imposed fines on the pellet maker for non-compliance with Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that is, half of the company's board was not independent, for the quarter ended June 30, 2024, according to a regulatory filing.
"NSE and BSE have levied fine of Rs 5,36,900 each (incl. GST) on the company," KIOCL said in the filing.
"The company has clarified to stock exchanges that it is a government company and as per the Companies Act, 2013 and Articles of Association of the Company, the power to appoint Directors on the Board of Directors of the Company vests with the President of India (including Independent Directors)," it added.
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All members of the company's board of directors are appointed by the Centre through the Ministry of Steel.
The non-compliance regarding the composition of the Board was neither due to any negligence/ default on the part of the company nor within the control of KIOCL's management/ board, the company said.
Further, KIOCL said it is making continuous efforts to meet the compliance requirements. It has requested the government to nominate a requisite number of Independent Directors on the company's board.
Once the government notifies the appointment of independent directors, the company shall comply with the requirements of SEBI (LODR) Regulations, 2015.
