PSU Firm MSTC Says Board Compliance Issue Beyond Management Control After BSE Fine
New Delhi: State-run MSTC Limited has informed stock exchanges that BSE Limited imposed a fine of ₹5.31 lakh, including GST, for non-compliance related to board composition norms during the quarter ended March 31, 2026.
According to the company’s exchange filing dated May 28, 2026, the penalty was levied under Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which pertains to the composition of the board of directors.
MSTC clarified that it is a Mini Ratna Category-I public sector undertaking operating under the administrative control of the Ministry of Steel, and appointments of directors, including independent directors, are made by the Government of India through the ministry.
The company stated that the non-compliance was neither due to negligence nor within the control of its management, adding that it has been continuously pursuing the matter with the ministry for the appointment of the required independent directors.
MSTC further said it has requested the stock exchange to waive the penalty, highlighting that similar waivers have been considered in the past for government-owned companies facing appointment-related delays.
The PSU also clarified that the fine will have no material impact on its financials, operations, or other business activities.