BSE Imposes ₹5.42 Lakh Fine on Coal India for Board Composition Lapse; Company Cites Government Control
Mumbai: Coal India Limited (CIL), a Maharatna Public Sector Undertaking, has been fined ₹5,42,800 (inclusive of GST) by the Bombay Stock Exchange (BSE) for non-compliance with corporate governance norms, according to a regulatory filing made today.
The penalty pertains to the violation of Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended December 31, 2025. This regulation mandates specific requirements regarding the composition of the board of directors, including the appointment of independent directors.
Key Details of the Penalty
| Particulars | Details |
|---|---|
| Authority | Bombay Stock Exchange (BSE) |
| Fine Amount | ₹5,42,800 (inclusive of GST) |
| Date of Receipt | February 27, 2026 |
| Violation | Non-compliance with Regulation 17(1) of SEBI LODR |
| Quarter in Question | Quarter ended December 31, 2025 |
Company's Response and Explanation
In the disclosure signed by B. P. Dubey, Executive Director (CS) & Compliance Officer, Coal India clarified that the non-compliance was neither due to negligence nor within the control of the company's management.
The company explained that Coal India is a 'Government Company' under the administrative control of the Ministry of Coal, Government of India. As per its Articles of Association, the appointment of all Board Members, including independent directors, is done by the President of India, placing such appointments outside the purview of CIL's management.
CIL stated that it has been regularly following up with the Ministry of Coal for the appointment of the requisite number of independent directors. The company also informed the exchange that it had requested a waiver of the penalty, noting that in the past, such waiver requests had been considered favorably by the exchanges.
Financial Impact
The company disclosed that the financial implication of the penalty is quantifiable at ₹5,42,800 (inclusive of GST) . The filing was made under Regulation 30 of the SEBI LODR, which governs the disclosure of material events.
About Coal India Limited:
Coal India Limited (CIL) is a Maharatna Public Sector Undertaking and the single largest coal producer in the world. It is under the administrative control of the Ministry of Coal, Government of India.