NEW DELHI: India’s largest oil companies, including Indian Oil, and BPCL have been penalized by NSE and BSE for a fifth consecutive quarter due to non-compliance with listing regulations that require a specific number of independent and women directors on their boards.
The bourses imposed fines on major oil refining and fuel marketing companies such as IOC, HPCL, BPCL, OIL, GAIL (India) Ltd, and MRPL for failing to meet the listing requirements in the quarter ending June 30, 2024.
Listing regulations mandate that companies have independent directors in the same proportion as executive or functional directors and at least one woman director on the board.
However, the companies said that the appointment of directors is the responsibility of the government, and they have no control over it.
IOC disclosed that the BSE and NSE each imposed a fine of Rs 5,36,900 on the company for non-compliance with Regulation 17(1) of the SEBI (LODR) regarding the composition of the Board of Directors during the quarter ended June 30, 2024.
“In response to the notices, IndianOil vide letter dated August 22, 2024 has represented to the BSE and NSE that being a government company, the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India and hence the shortfall in independent directors including non-appointment of women independent director on the board of the company during the quarter ended June 30, 2024 was not due to any negligence / default by the company,” IOC said in a statement.
The company argued that it should not be held responsible for paying the fines and requested that they should be waived. The company also stated that it regularly communicates with the ministry to ensure the appointment of the required number of directors to maintain compliance with corporate governance standards.
Bharat Petroleum Corporation Limited (BPCL) has announced that it has been fined Rs 2,41,900 each by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for having one independent director short on its board. BPCL too said that has no control over the appointment of directors and will be approaching both stock exchanges for a waiver of the fines.
Similarly, Hindustan Petroleum Corporation Limited (HPCL) has been fined Rs 5,36,900 each by BSE and NSE for the same reason. GAIL (India) Limited also facing similar fines said, “This is to submit that the non-compliance with regard to the composition of the board was neither due to any negligence/default by the company nor within the control of GAIL’s management and continuous efforts were also made to meet the compliance requirements.”
Oil India Limited (OIL) and Mangalore Refinery and Petrochemicals Limited (MRPL) were also slapped with fines of Rs 5,36,900 each by both stock exchanges. These oil giants have been non-compliant with the listing norms since April last year and have been facing fines every quarter since then.
Indian Oil Corporation (IOC), HPCL, BPCL, GAIL, OIL, and MRPL were fined Rs 5,36,900 each by NSE and BSE for the January-March quarter. The companies were also fined Rs 5,42,800 each for the third quarter (October-December 2023) and faced a similar fine for the second quarter (July-September 2023).
The bourses imposed fines on major oil refining and fuel marketing companies such as IOC, HPCL, BPCL, OIL, GAIL (India) Ltd, and MRPL for failing to meet the listing requirements in the quarter ending June 30, 2024.
Listing regulations mandate that companies have independent directors in the same proportion as executive or functional directors and at least one woman director on the board.
However, the companies said that the appointment of directors is the responsibility of the government, and they have no control over it.
IOC disclosed that the BSE and NSE each imposed a fine of Rs 5,36,900 on the company for non-compliance with Regulation 17(1) of the SEBI (LODR) regarding the composition of the Board of Directors during the quarter ended June 30, 2024.
“In response to the notices, IndianOil vide letter dated August 22, 2024 has represented to the BSE and NSE that being a government company, the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India and hence the shortfall in independent directors including non-appointment of women independent director on the board of the company during the quarter ended June 30, 2024 was not due to any negligence / default by the company,” IOC said in a statement.
The company argued that it should not be held responsible for paying the fines and requested that they should be waived. The company also stated that it regularly communicates with the ministry to ensure the appointment of the required number of directors to maintain compliance with corporate governance standards.
Bharat Petroleum Corporation Limited (BPCL) has announced that it has been fined Rs 2,41,900 each by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for having one independent director short on its board. BPCL too said that has no control over the appointment of directors and will be approaching both stock exchanges for a waiver of the fines.
Similarly, Hindustan Petroleum Corporation Limited (HPCL) has been fined Rs 5,36,900 each by BSE and NSE for the same reason. GAIL (India) Limited also facing similar fines said, “This is to submit that the non-compliance with regard to the composition of the board was neither due to any negligence/default by the company nor within the control of GAIL’s management and continuous efforts were also made to meet the compliance requirements.”
Oil India Limited (OIL) and Mangalore Refinery and Petrochemicals Limited (MRPL) were also slapped with fines of Rs 5,36,900 each by both stock exchanges. These oil giants have been non-compliant with the listing norms since April last year and have been facing fines every quarter since then.
Indian Oil Corporation (IOC), HPCL, BPCL, GAIL, OIL, and MRPL were fined Rs 5,36,900 each by NSE and BSE for the January-March quarter. The companies were also fined Rs 5,42,800 each for the third quarter (October-December 2023) and faced a similar fine for the second quarter (July-September 2023).
