Coal India slapped with ₹10.7L penalty by stock exchanges
What's the story
Coal India Limited (CIL), the state-owned coal giant, has been fined a total of ₹10.72 lakh by the BSE and National Stock Exchange (NSE) for failing to comply with Securities and Exchange Board of India (SEBI) regulations. The penalty was imposed for not appointing the required number of independent directors on its board as per Regulation 17 of SEBI's Listing Obligations and Disclosure Requirements (LODR).
Regulatory filing
Non-compliance not due to negligence
In a regulatory filing, CIL acknowledged receipt of notices from NSE and BSE regarding its non-compliance with Regulation 17 of SEBI LODR for the quarter ending June 30, 2025. The company clarified that this non-compliance was not due to any negligence or default on its part but was beyond the control of CIL's management.
Board appointments
Six independent directors on board
CIL clarified that the appointment of all its board members is done by the President of India, thus making it out of CIL management's purview. The company also said it has been regularly following up with the coal ministry for appointing a requisite number of independent directors on its board. Currently, CIL has six independent directors on its board.
Production dip
Production drop and future compliance
CIL has witnessed a 6% drop in production to 229.8 million tons (MT) in the April-July period of the current fiscal year. The government is working to ramp up output and reduce imports. Industry analysts attribute this decline to seasonal monsoon-related disruptions affecting mining operations and power plant dispatches. CIL has requested BSE and NSE for a waiver of penalty, citing past instances where such requests were favorably considered by the exchanges.