NSE Fines Oil India Ltd ₹5.4 Lakh Over Board Compliance Issues

New Delhi, February 28, 2026 – State-run energy giant Oil India Limited (OIL) has been penalized by the National Stock Exchange (NSE) for failing to meet regulatory requirements regarding its Board of Directors' composition.

The Penalty Details

In a formal disclosure to the stock exchanges under Regulation 30 of the SEBI (LODR) Regulations, 2015, Oil India revealed that the NSE has imposed a fine of ₹5,42,800 (inclusive of taxes) for the quarter ended December 2025.

The penalty stems from a violation of Regulation 17(1), which mandates that listed entities maintain a specific number of Independent Directors on their Board to ensure balanced corporate governance.

Company Response: "Beyond Our Control"

Oil India Limited, a Maharatna CPSE, clarified that the non-compliance is an administrative matter rather than an operational failure. As a Government of India Enterprise, the authority to appoint directors rests solely with the Ministry of Petroleum & Natural Gas (MoPNG).

"The said non-compliance with respect to the Composition of the Board was beyond the control of the Company," the filing stated.

The company further noted that it has been in consistent communication with the Ministry, requesting the urgent appointment of the requisite number of Independent Directors to align with SEBI guidelines.

Financial and Operational Impact

Despite the monetary fine, Oil India has assured shareholders and stakeholders that there is no material impact on the company’s core financials, day-to-day operations, or other strategic activities.

The company remains one of India's flagship public sector units, recently reporting robust production growth, though it continues to navigate the procedural complexities of being a government-controlled listed entity.