STC India Fined by BSE and NSE for SEBI LODR Non-Compliance

New Delhi: The State Trading Corporation of India Ltd. (STC) has informed stock exchanges that it has received notices from BSE Limited and National Stock Exchange of India Limited (NSE) regarding the imposition of fines for non-compliance with certain provisions of the SEBI Listing Regulations.

According to the company’s disclosure dated March 2, 2026, both exchanges have levied a fine of ₹11,94,160 each for the quarter ended December 31, 2025.

Reason for the Penalty

The fines were imposed due to non-compliance with Regulations 17, 18, 19, and 20 of the Securities and Exchange Board of India (SEBI) under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The non-compliance pertains specifically to the company not having the requisite number of Independent Directors on its Board during the December 2025 quarter.

These regulations mandate listed companies to maintain an optimal composition of the Board, including a specified number of independent directors, and ensure the proper constitution of key committees such as the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee.

Disclosure Timeline

STC clarified that the notices from both exchanges were received via email on February 27, 2026. The company submitted the disclosure to the exchanges on March 2, 2026, which was the first working day following receipt of the notices.

Official Statement

In its communication to the exchanges, signed by Company Secretary and Compliance Officer Vipin Tripathi, the company stated that it was informing the exchanges under Regulation 30 of SEBI LODR Regulations and requested the exchanges to take the information on record.

Market Implications

Such penalties, while regulatory in nature, highlight ongoing governance and compliance challenges in public sector enterprises. Investors typically monitor board composition and corporate governance compliance closely, as they are key indicators of institutional oversight and regulatory adherence.

Further updates regarding the company’s steps to reconstitute its Board in line with regulatory requirements are awaited.