MTNL fined Rs 6.73 lakh for SEBI regulation breaches

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have imposed penalties on Mahanagar Telephone Nigam Limited (MTNL), amounting to a total of Rs 6.73 lakh. The fines were levied for violations of regulations set by the Securities and Exchange Board of India (SEBI).

According to a regulatory filing, “MTNL has received letters from the NSE and the BSE regarding non-compliance with the provisions of Regulation, of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.” The non-compliance relates to issues concerning the constitution of the Audit Committee and the composition of the Board, including the absence of a female director.

The penalties also cover failures to meet the regulatory requirements regarding the constitution of the Risk Management Committee, the Stakeholders Relationship Committee, and the Nomination and Remuneration Committee.

In its response to the fine imposed, MTNL stated that, as a public sector undertaking, all board appointments, including those of independent directors, are made by its administrative ministry, the Department of Telecommunications (DoT). The company added that the DoT had nominated two independent directors, including one female director, with effect from 15 April. It further noted that the Centre is in the process of appointing four additional independent directors.