Why MTNL has been fined by NSE and BSE
What's the story
Mahanagar Telephone Nigam Ltd (MTNL), a state-run telecom company, has been fined ₹13.46 lakh by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The penalty is for failing to comply with the Securities and Exchange Board of India's (SEBI) board composition norms. The violations include not having a woman director on its board and issues with various committees such as audit, nomination, remuneration, stakeholder relationship, and risk management.
Company stance
MTNL received letters from exchanges
In its regulatory filing, MTNL acknowledged the fines of ₹6.73 lakh each imposed by NSE and BSE for non-compliance with SEBI regulations. The company noted that it had received letters from both exchanges regarding the violations, which included failing to appoint a woman director, and not constituting several key committees as per SEBI (LODR) Regulations, 2015.
Appointment process
Appointment of independent directors
MTNL clarified that it is a public sector undertaking and all board appointments, including the independent directors, are made by the Department of Telecommunications (DoT). The firm said that two independent directors, including one woman director, were appointed by DoT effective April 15. It also said that appointments of four more independent directors has already been taken up with the Indian government.