NSE, BSE impose Rs 5.42-lakh penalty on MTNL for non-compliance

New Delhi: Stock exchanges NSE and BSE have imposed a penalty of Rs 5.42 lakh on state-owned debt-ridden telecom firm MTNL for not complying with the norms related to the composition of the board.

MTNL, in a regulatory filing, said it is required to appoint four more independent directors as per the norm, but it has been unable to do so.

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"...this is to inform you that MTNL has received Letter...dated November 28, 2025 from NSE and Email/Letter ...dated 28.11.2025 from BSE regarding non-Compliance with the provisions of Regulation 17(1) of SEBI (LODR) Regulations, 2015 respectively, i.e. Non-compliance with the requirements pertaining to the Composition of the Board. In this regard, both NSE and BSE has imposed fines on MTNL amounting to Rs 5,42,800," the filing said on Saturday.

The penal amount comprises basic fines amounting to Rs 4.6 lakh and a GST at the rate of 18 percent amounting to Rs 82,800.

MTNL said that it is a public sector undertaking and all appointments, including independent directors on the board, are made by the administrative ministry, which is the Department of Telecommunications (DoT).

"Two Independent Directors, including one Women Independent Director, were appointed by DoT vide Letter...dated April 15, 2025, with effect from April 15, 2025. The matter for the appointment of four more Independent Directors has already been taken up with the Government of India. The Company is also requesting NSE and BSE for waiver of fines," the filing said.

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