NSE-BSE impose Rs.673,780 on MTNL for SEBI violations
It relates to the Board composition, including the absence of a woman director, and the improper constitution of key committees
By: : Ajay Singh
Update: 2025-09-01 05:45 GMT
NSE-BSE impose Rs.673,780 on MTNL for SEBI violations
It relates to the Board composition, including the absence of a woman director, and the improper constitution of key committees
Government-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) has stated that it has been fined Rs.673,780 by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), for not complying with the Securities and Exchange Board of India (SEBI) norms.
The penalty includes a basic fine of Rs.5,71,000, along with Rs.1,02,780 as Goods and Services Tax (GST).
The non-compliances relate to the Board’s composition, including the absence of a woman director, and extend to the improper constitution of the audit, nomination and remuneration, stakeholders’ relationship, and risk management committees.
MTNL clarified that it was a Public Sector Undertaking, and all Board appointments, including independent directors, were handled by the Department of Telecommunications, Ministry of Communications. The two independent directors, including one woman, were appointed by DoT, effective from 15 April.
The telecom company added, “The matter for the appointment of four more independent directors has already been taken up with the government.”
Meanwhile, the company reported an increase in its loan defaults, with outstanding dues to public sector banks rising to Rs.8,659 crore as of 31 July, an increase from Rs.8,584.93 crore on 30 June.
Its financial debt stood at Rs.34,577 crore at the end of July, slightly higher than Rs.34,484 crore reported at the end of June.