Stock exchanges NSE and BSE have fined public sector telecom company Mahanagar Telephone Nigam Limited (MTNL) Rs 673,780 for non-compliance of Securities and Exchange Board of India (sebi) rules. The company gave this information in a regulatory filing on Saturday.
Mahanagar Telephone Nigam Limited (MTNL)’s non-compliance is related to the composition of its board, including the absence of a woman director and improper formation of key committees. The improper formation of key committees includes audit, nomination and remuneration, stakeholder relations and risk management committees.
NSE and BSE have imposed a fine of Rs 673,780 on MTNL company for this mistake which has happened due to non-compliance of Sebi rules. This fine includes a basic penalty of ₹5,71,000 and goods and services tax of ₹1,02,780.
MTNL has sought a waiver on this penalty. Through its letter, MTNL clarified that it is a public sector undertaking and all appointments to the board, including independent directors, are made by the Department of Telecommunications (DOT), Ministry of Communications. MTNL company has requested NSE and BSE to waive the penalty.
