Why MTNL has been fined ₹5.4L by NSE, BSE
What's the story
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have fined state-owned telecom firm Mahanagar Telephone Nigam Limited (MTNL) a total of ₹5.42 lakh. The penalty is for non-compliance with regulations concerning board composition. In a regulatory filing, MTNL admitted that it has failed to appoint four additional independent directors as mandated by the rules.
Penalty breakdown
Fine details and MTNL's response
The total penalty imposed on MTNL is ₹5,42,800, which includes a basic fine of ₹4.6 lakh and an 18% GST of ₹82,800. In its filing, MTNL clarified that as a public sector undertaking (PSU), all board appointments including those of independent directors are done by the administrative ministry, the Department of Telecommunications (DoT).
Waiver request
MTNL's appeal for waiver of fines
MTNL also revealed that two independent directors, including one woman independent director, were appointed by the DoT on April 15, 2025. The company further stated that it has already taken up the matter of appointing four more independent directors with the Indian government. In light of these developments, MTNL is now seeking a waiver from NSE and BSE for the penalties imposed.