NSE and BSE Impose Fines on Power Grid for Non-Compliance

by Psu Connect
Date: 25-11-23

Power Grid Corporation has sought a waiver of the fine, citing that as a government enterprise, the appointment of directors lies with the President of India.

NSE and BSE Impose Fines on Power Grid for Non-Compliance

New Delhi: Leading Indian stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), have imposed fines on Power Grid Corporation, a state-owned company, for non-compliance with regulations. The company has been fined Rs 5,42,800 by each exchange for not having the required number of independent directors, including one woman, on its board.

Power Grid Corporation has sought a waiver of the fine, citing that as a government enterprise, the appointment of directors lies with the President of India. The company is actively working with the Ministry of Power to address the issue and fill the vacant director positions.

Details of the Non-Compliance:
According to regulatory filings, both the NSE and BSE have penalized Power Grid Corporation for failing to meet the mandated criteria for independent directors. The fine imposed on the company is Rs 5,42,800 each by both exchanges. The exchanges have notified the company about its non-compliance with the regulations regarding the required number of independent directors on its board.

Power Grid Corporation's Response:
As a government-owned company, Power Grid Corporation has argued that the responsibility of appointing independent directors rests with the President of India. The company has made a request to waive the fine, emphasizing that the non-compliance was not within its control. Power Grid Corporation has taken up the matter with the Ministry of Power to address the issue and fill the vacant positions of independent directors.