New Delhi: State-owned Rashtriya Chemicals and Fertilizers Ltd (RCF) has been fined Rs 9.66 lakh each by stock exchanges BSE and NSE for non-compliance related to regulations for the composition of board.
The company has requested the bourses to waive off the fines as the power of appointing directors vests with the government.
In a regulatory filing, RCF informed that the company has received notices from BSE & NSE on August 21 in respect of non-compliances of regulation regarding non-compliance with the composition of Board Directors, Audit and Nomination and Remuneration Committee.
"A fine of Rs 9,66,420 each have been levied by both the Exchanges for such non-compliance," it added.
In this regard, RCF has written to the BSE & NSE that "being a government company, the power to appoint Directors including Independent Directors vests with Department of Fertilizers (DoF), Ministry of Chemicals and Fertilizers, Government of India."
"The shortfall in number of 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," it said.
Accordingly, the company said it should not be held liable to pay the fines and the same should be waived off.
The company regularly takes up with DoF for the appointment of requisite number of Independent Directors, including Woman Independent Director, to ensure compliance with Corporate Governance norms enunciated under SEBI (LODR) as well as the Companies Act, 2013.
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